Investors are familiar with the strategy that says to "buy low, sell high", but what about the reverse – "sell high, buy low"? That is the basic premise behind short selling. While you may be intrigued by its potential to help you profit from a stock's decline, it is important to first understand how the short sale process works.
Trading at Fidelity
There are many reasons to choose Fidelity for margin – low rates, powerful tools, convenience, and repayment flexibility. Here you can view commission and margin rates and get more information in our Trading FAQs.
With some of the lowest costs in the industry, trading online with Fidelity means you keep more of your money working for you.
In order to short sell at Fidelity, you must have a margin account. Short selling and margin trading entail greater risk, including, but not limited to, risk of unlimited losses and incurrence of margin interest debt, and are not suitable for all investors. Please assess your financial circumstances and risk tolerance before short selling or trading on margin. Margin trading is extended by National Financial Services, Member NYSE, SIPC, a Fidelity Investments company.