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Should we be able to short-sell on stock trader?

  1. Yes.

  2. No.

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  1. Ydde2010 Builder
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    Minecraft Username: Ydde2010

    Suggestion: My suggestion is that we should be able to short-sell stocks on stock trader. This means that you can make money on stocks if the price goes down.

    Short-selling works as follows. Suppose you short-sell 100 shares in a stock where shares are valued at $50 each (so a $5,000 investment). If the value of the stock falls to $45 and you close your position here then you make (50-45)*100=$500. Note: Your profit is capped when you short-sell and your position can be closed if you lose the original value of your investment. In our case, if the value of each share reached $65 and you closed your position, you would make a loss of (65-50)*100= $1500. If the price reached $100, then your losses are $5,000 which is the total value of your investment. Your position is closed at this point, and you are left with nothing.

    Reason: Stock traders in the real world short stocks almost as often as they go long on stocks. As it stands on ECC, people are currently only being rewarded by correctly predicting when the markets go up. There is just as much money to me made from a market collapse/crash than there is a market boom/bubble. I feel players should be rewarded for correctly betting on a downtrend/downturn as well as an uptrend.

    Other information: For a more detailed explanation of short-selling, see here: http://www.investopedia.com/terms/s/shortselling.asp
     
    #1 Ydde2010, Sep 26, 2015
    Last edited: Sep 26, 2015
  2. Nicit6 N6
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    This is not something we will be adding as with this you are essentially making money expecting people to pay it back, and it would require a complicated process to ensure that this. Also with shorts there is an unlimited potential for loss as there is no limit on how high a stock may go.
     
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