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Your Money: Short selling: Stock trading weapon for bears

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The margin trading contract usually includes a stock loan approval clause. By Sunil K Parameswaran As we know, bulls are traders who expect the markets to rise. As a result, they purchase securities in anticipation of a situation where they can later sell at a higher price. Technically, we say that such traders have been long in stocks. Long traders can sell the stocks whenever they want. Their philosophy is "buy cheap and sell high". Bearish speculators, on the other hand, expect the markets to decline later. They want to take advantage of it by borrowing securities and then selling them. They assume that they can then get the securities back at a lower price and return them. Technically, we say that such traders were short in securities. Traders who take short positions have an obligation to buy back and redeem the securities. This act of buying back and returning the assets is known as "covering a short position". Hence, the philosophy of such traders i...

Cramer's Mad Money Recap: Cleveland-Cliffs, Tractor Supply

Many people think this market is as good as it gets. But Jim Cramer told his Mad Money viewers on Monday that the recent Wall Street action told him a different story. It tells him there is no peak in sight. It has been decades since the US recovered strongly economically. But after the world was put on hold in 2020, there is so much backlog that most investors can't even understand how good things are going to be. We haven't even started seeing the travel and entertainment pickup, Cramer said, and that's just the beginning. There is much more to our recovery than just cyclical stocks. Construction is also booming, which has helped Otis (( OTIS ) - Get the report Shares rocket 7%. We also saw a strong rally in American Express (( AXP ) - Get the report , as Cramer predicted last week, up 4.1% after the voyage resumed. Then there is AMC Entertainment (( AMC ) - Get the report which recovered 13.1%. The market has even warmed to Skyworks Solutions (( SWKS ) - Get ...