RE: Dividend and next production report3 Sep 2018 13:03
Well explained. The short seller is merely profiting from the difference in (high) selling price, and buy back (low). Not from any extra bonuses that manifest. This is why we cant just go and place a large short one day before a stock goes ex dividend...
Generally i try to avoid going short, and look for long opportunities instead. But sometimes you have no other choice once that a new, ong bearmarket begins.
IMO for normal mid sized europen PI's (with 15-20 shares in their PF, 10k per share), the best option is probably just Cfds, so your bet works very comfortable for you, without any additional handling or stress.
This only works if your 3k bet is fully expendable together with some 2k margin. It only works if you are sure tabbout a bet. Like KAZ dropping through 800p after the RNS.
If I would start out new with small scale shorting, then I would chose (put) warrants from giants like BNP paribas.
For eg 5 year bearish bet on the Ftse. And then just wait and see for several months, without any costs occurring.
This several years tmeframe gives you the comfort to sit out any sudden 5% rise of the Ftse (has there be any recently??).
The inability of the main market to stage substantial rises, tells you that a barrier has been reachee where the tide might turn.
(All it takes is to oust Trump:))
-------------
"...the shorter is receiving the dividend and merely passing it onto the original institution they have borrowed the share off ....it is a bit like being a tenant and passing on any mail received onto the owner."