How to short Amazon Stock

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The content of this video and article are not financial advice. You should not make any investments based on this video and article. I am not liable for any losses you may incur when trading, always do your own research.

Shorting Amazon (AMZN)

In the past couple of years we have seen a massive bull run in the FAANG stocks. Although in the last weeks we have seen indications of a trend reversal. Therefor I open a short position on the Amazon stock. To short Amazon (AMZN) you are speculating against the Amazon stocks. You need have a broker to be able to short Amazon.

What is shorting a stock ?

Shorting a stock is a bearish action. You expect the price to drop of a certain asset, in this case the Amazon stock but it is also possible with Bitcoin for example.. Shorting means that you are borrowing stocks of a certain asset to sell directly to buy them at a cheaper price later. Let’s say I’m shorting 1 Amazon stock. That means I would borrow 1 Amazon stock from my broker and sell it directly for the market price at let’s say $1600. When the price drops to 1500$ I would buy 1 Amazon stock to give back the stock I have borrowed from the broker. The profit in this case would be a 100$.

It is the opposite of a long position. Then you would buy a stock at a certain price and would sell it when the price would go upwards. Taking a long position is a bullish action.

How to short Amazon stock ?

You need a broker to take a short position on the Amazon stock. In our example we are using the broker Plus500 but of course there are a lot more options. As in the video we go to the Amazon stock page. There we press the “SELL” button. In the “SELL” screen we specify the amount of shares we want to sell, when to close at profit and set a stop loss.
After inputting the information press the “SELL” button and the order is placed and can be reviewed under “My orders”.

Where to short Amazon stock ?

We recommend to short Amazon stocks on plus500Plus500 offers CFD trading in a variety of financial markets including commodities, cryptocurrencies forex, stocks, ETFs and market indices. Therefor also Amazon stocks. Plus500 is well known for their simple and easy to understand interface. It’s a well-known platform for selling and buying CFD’s

 

 

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