RE: Shorting oil stocks15 Sep 2025 14:22
Shareflyer, I'm becoming a bore on this subject, but the fact that shorts increase when an SP is going down is generally a signal that large (ish ) holders are taking out insurance against further falls. If ** you hold £10 million value in this stock, then every 1% fall costs you £100k. This is a case where a short might be appropriate. As the SP falls further, you don't mind too much 'cos even though your holding is depreciating in value, the short rises profitably and, at least partially compensates for that. If, on the other hand, the SP rises and the short loses , your profit in the SP rise more than covers the loss. There is still an awful lot of misunderstanding of how shorts work. All IMHO DYOR