SportStack Academy | How can I sell shares without owning them?

How can I sell shares without owning them?

Academy > How can I sell shares without owning them?

SportStack is the only place where you can make money from predicting a player will perform badly! If you think a player will PayOut less than the current Share Price then on SportStack you can sell shares in them and win if you are right and they ultimately PayOut less than the price you sold your shares at.

SportStack is a peer to peer exchange and so every time you buy or sell shares you are trading against another SportStack user. When you buy shares - another user is selling them to you, and when you sell shares - another user is buying them from you – just like the stock market!

To Sell Shares or ‘go short’ a player is easy!

Let’s use an example:

As you can see above you can currently Sell shares in Harry Kane at 76p which means another user is willing to buy him for 76p. You can also Buy Shares in Harry Kane at 78p and this means that another user is willing to sell him for 78p.

If you decide that the Share Price is too high and don’t believe Harry Kane will PayOut 76p then you should sell Shares in him by clicking on the Sell button for 76p.

When you Buy a Share the Price is easy to understand:

To Buy 1 Share at 60p will cost you 60p – simple and the most you can lose is your 60p in the Worst Case scenario that the Shares PayOut 0p.

Cost of 1 Share = Difference between the Price and the Worst Case Outcome

Given that players will PayOut between 0p and 100p when you buy a share the cost is simply the difference between 0p and the price you pay.

But when you sell a share, the cost is the difference between the price you sell and 100p (the worst case outcome).

So to sell 1 share in Harry Kane at 76p = Difference between 76p and 100p = 24p!

You sold 1 share in Harry Kane at 76p and it cost you 24p. If he ends up Paying Out 40p then you have made a 36p profit on the trade (76p – 40p) – that’s a 150% return on your 24p!

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