Knowledge Center

  • The Short Sale Strategy

    Short selling is used as a bearish strategy in attempt to profit from the potential price decline of a security. Learn more about the short sale strategy.

  • Short Selling at Scottrade

    Find out how the short sale process works at Scottrade and what is required to sell a stock short.

  • Settlement & Maintenance of Short Sales

    It's important to realize that the number of shares available at the time you create your order may not be the number of shares available when your trade settles. While the trades will still settle, they may be closed out by Scottrade any time after settlement date.

  • Short Sale Rebate Fee

    When you borrow money from a lending institution, you agree to pay interest on the loan based on certain conditions such as the loan amount, availability, etc. Similarly, when you borrow shares of a stock, you may be charged interest based on the underlying lending conditions of the security in the short sale - primarily the availability of shares. This fee is referred to as the short sale rebate fee.

  • Closing a Short Sale

    Once you've created a short sale position, you must eventually cover your short sale by delivering shares or repurchasing them in the market. Learn about closing a short sale.

  • Forced Buy-Ins

    Sometimes in a short sale, it will be necessary to purchase the stock back and close the position for regulatory purposes. This is called a forced buy-in, and is a risk you take when initiating a short position.

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The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.