Risks of Short Selling
- Because the price of a security you have short sold can increase by an unlimited amount, your potential losses are also unlimited.
- Your lender may ask you to make a payment, provide additional collateral or close out your short sale transaction before your planned timeframe.
- Because a short sell facility is a feature of a margin loan, it also carries with it the same risks as you would find with a margin loan.
Please ensure you read and understand the Leveraged Short Plus Product Guide before proceeding with a short selling strategy.
Short Selling in Action
Whilst orders are placed directly into the ASX’s Integrated Trading System (ITS) you can amend or cancel an open order at anytime.
How to Place a Short Sell Order
Once you have your short selling accounts set up, there are a few simple steps for placing your trade:
- Ensure the security you wish to short sell is on the Leveraged Approved Short Plus list.
- Request authorisation for the trade directly from Leveraged.Phone: 1300 307 807 Email: firstname.lastname@example.org Your authorisation is valid for one day only, and you will be provided with an authorisation code.
- Call the Sequoia Direct trading desk to place your short sell order, quoting your authorisation code.Phone: 1300 363 766
- Advise Leveraged of whether or not your trade has been completed, by 4.15pm the same day.