How to Short Stocks in the UK

Shorting stocks is an investment strategy that involves selling shares you don’t own, in the hope that they will fall in price. If you’re right, you can then buy back the shares at a cheaper price and pocket the difference – minus any loan interest. However, this is a risky and complicated strategy, and it’s perhaps best avoided by novice investors.

In the how to short stocks UK can also trade stocks using other methods besides shorting them directly. For example, CFDs (Contracts for Difference) trading is popular globally and doesn’t involve the complexities of borrowing shares. Spread betting is another unique method, available in the UK and Ireland, that lets traders place a bet on which way a stock’s price will move. In most cases, profits are tax-free*.

Best UK Currency Trading Platforms for Shorting in 2024

If you’re ready to try your hand at shorting stocks, open a demo account with IG and practice your trades in a risk-free environment. Once you’re comfortable with your demo trading, you can then make the switch to live markets.

Please note: If you short a stock in a currency other than sterling, your profit or loss will be converted to sterling at the rate of the time of your sale and purchase. This will be reflected in your account balance and in the contract details. Please see the ‘Currency and Regulatory Information’ tab for more details.

To go short, simply select the market you want to trade and enter a sell order for the number of shares you wish to borrow. Your broker will then sell the shares on the market and return them to their owner.

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