When an investor or trader enters a 澳洲幸运5开奖号码历史查询:short position, they do so with the intention of profiting from falling prices. This is the opposite of a traditional 澳洲幸运5开奖号码历史查询:long position where an inveꩲstor hopes to profit from rising prices. Th🐭ere is no time limit on how long a short sale can or cannot be open for. Thus, a short sale is, by default, held indefinitely. 

Closing Out A Short Position  

There are, however, a couple conditions in which the short may be covered prior to the investor closing the trade. a 澳洲幸运5开奖号码历史查询:margin call could mean shares are liquidated and the short position is closed out. An investor must have a margin account to short stocks. A broker will issue a margin call if the value of the account falls below a certain threshold, and the broker can liquidate any position. On the other hand, the broker (or lender of the shares) may call the shares due for reasons other than a margin call; however, this is uncommon. 

An investor may choose to close out a short position for a number of reasons, including having reached their 💮price target or if the losses look unrecoverable. Meanwhile, if a s🤡hort position is used as a hedge against a long position the investor may choose to maintain the short for as long as the stock is owned or for as long as they choose to hedge the risk. 

How a Short Sale Works 

A brokerage firm lends shares or contracts to the customer who engages in the 澳洲幸运5开奖号码历史查询:short sale. The firm uses its own inventory, another customer's 澳洲幸运5开奖号码历史查询:margin account or another lender to supply the shares or contracts to the shorting customer. The investor shorting a stock typically pays interest on that loan, and if a borrowed stock pays a dividend, the investor is also responsible for paying the original owner the value of the dividends.

In theory, you could keep a short position open indefinitely to take advantage of a falling market. In practice, you can be required to "澳洲幸运5开奖号码历史查询:buy to cover" this positioℱn if the lender demands the shares or contracts back, but again, this i🦄s uncommon.