Part 6 of 12 part Short Story on Short Selling series. For profit short sellers need: costs, prices and volumes in their favor. Today we discuss prices and costs short sellers need for profitable trades. Experienced short sellers bring a wide field of vision to the market. Each influencing factor must be carefully examined and considered. Then the combined effects of all the factors must be judged before selling short.
Costs and price matter and include transaction costs and fees, selling price realised and finally the buying price paid to close out the short position.