*NB: Links in the blog post would lead you to external sites.
The bearish stock market has led me to revisit this post on Contract for Difference which was what I have read up about to kick-start short selling. BUT this is not a post to encourage anybody to do so, it’s more of an FYI.
CFD is one of the instrument that can be used for short selling which gives you more flexibility to investment and also hedging power, read more here. Only some brokers offer CFD trading and it is traded using a margin account which increases its risk.
The brokers that offer CFD can be subdivided into DMA or MM. DMA seems like a better option with higher transparency. DMA stands for direct market access which reflects the actual stock market prices.
Here’s an interesting read about what is short interest. But I have yet to discover …