Question for the Pro's

[benvestor]

I don't want to sound too ignorant here, and understand that I am pretty new to the trading game. More like swing trading i guess.
Here is my question:

How the heck does one short shares using TD ameritrade?


I just don't see where you go and ask to "borrow" shares or how it all works.. Do i buy on margin and sell back the same day only lower??

Do i call my broker and lie about the price in which i bought them to reap some sort of gain?
Help a Newbie out!

Ben

[kingdisco]

do you have a margin account?

there should be an option to Sell Short and an option for Buy to Cover.

Sell Short = Sell stock for a price
Buy to Cover = Buy back same stock for a cheaper price

Pocket the Difference

For example with one share short....
A.) Sell 1 Share Fas Short at $60 = +$60
B.) Buy to Cover 1 Share Fas = $59 = -$59
C.) Profit = $60-59= $1

and shhhh i'm actually asleep right now.

[benvestor]

ah, the option must not be available because i have yet to put my balls on the line by opening a margin account.

The concept of making money on stocks going down is the part i understood, but thanks for the very intuitive arithmetic formula lol..

thanks a lot, disco. i will check into the margin acct.

[timber]

CALL THEM AND MAKE SURE THEre AVAILABLE TO SHORT....
AND HERES A POINTER ....DONT SHORT THEM JUST BECAUSE THEre AVAILABLE....ive done that before....only short them when you see an actual need