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Can you short sell stocks on DEGIRO?

 

Yes, short selling is possible on DEGIRO however we strongly recommend that you understand the risks before you start selling stock without owning it.

 

What is shorting?

 

Selling a stock short means that you borrow the stock from your broker and sell it. You expect the price to drop, and thus can buy the stock back at a lower price and pocket the profit while giving back the ownership of the stock to the lender.

 

Step by step: how to short sell on DEGIRO

 

  1. Go to degiro.com and click Login
  2. Login with your username and password
  3. Make sure that you have an Active or Trader account 
  4. Type the ticker symbol of the stock into the search box in the top left corner
  5. Select the stock and click on the red 'S' letter to open the place order box
  6. Now that the place order box has appeared on the right, make sure that the SELL is highlighted in red
  7. Select the order type, limit order is the default at DEGIRO
  8. Set the price you want to get for a single stock
  9. Select the quantity you are willing to sell short
  10. Hit 'Place Order' to place the selling order
  11. Wait for the order confirmation in the pop-up window
  12. When the order is fulfilled you will get a Fulfillment confirmation
  13. Congratulations, now you successfully sold the stock

Notes from DEGIRO's website:

"Short selling is restricted on certain products, such as U.S. securities and category D products. In this case, if you try to take a short position, you will recieve an error message.

It is not possible to hold both a short and a long position in the same product. Placing a sell order in a product in which you currently hold a long position will sell your existing shares."

Can you short sell stocks on DEGIRO? - Desktop login

Can you short sell stocks on DEGIRO? - Placing a selling order

 

The risks of shorting on DEGIRO

 

If the stock moves up in price you will have to cover the losses with cash. You can only hold the position until you meet the margin requirements as is usually the case when the market moves against you.

DEGIRO further reading:

Author of this article

Bence András Rózsa

Author of this article

Bence’s purpose is to help you to understand the logic behind financial services. In his master’s studies, he specialised in business economy and finance to be able to give you a clear picture of the brokerage world. Having reviewed multiple brokers and robo-advisor services, his goal will always be to guide you in the world of investing as it is.

Bence András Rózsa

Broker Analyst

Bence’s purpose is to help you to understand the logic behind financial services. In his master’s studies, he specialised in business economy and finance to be able to give you a clear picture of the brokerage world. Having reviewed multiple brokers and robo-advisor services, his goal will always be to guide you in the world of investing as it is.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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