How to short on Trading 212?

Written by
Eszter Z.
Fact checked by
Adam N.
Updated
May 2024

How to short on [Trading212](brokername-link/first-chapter)

Trading 212 is a global CFD (Contract for Difference) and forex broker, but clients can also trade stocks and ETFs free of charge. You can short sell stocks on Trading 212 by opening a CFD account.

What does shorting mean?

A short sale (or 'shorting') is when you sell a stock you borrowed (from your broker) at the current price, in the hope of buying it back later for less money and pocketing the difference. It is the opposite of taking a 'long' position, i.e. buying a stock, in the hope that its price will increase.

How to short stocks on [Trading212](brokername-link/last-chapter)

  1. Open your account
  2. Open up the 'detailed trade box'
  3. Enter the quantity of the asset you want to sell
  4. Click 'sell'

The risks of short stocks on [Trading212](brokername-link/last-chapter)

Short selling is a high-risk strategy and generally not for beginner traders. When you sell short, you sell stocks you do not own. You borrow these stocks from your broker. Short sellers want to profit from an expected decrease in the stock price. If the price of the stock drops, short sellers can buy the stock back at a lower price and then return it to their broker. The difference in price is their profit. However, if the price goes up, short sellers lose money. The higher the price goes, the bigger the loss.

If you take a long position, there is no limit to how high a stock can rise, and the worst that can happen is that the stock loses all its value and you lose your money, but no more than what you have invested. By contrast, a short seller’s losses are potentially unlimited.

Trading 212: further reading

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Eszter Zalán
Author of this article
Eszter is a former Editor and Financial Journalist for BrokerChooser. She wrote and edited BrokerChooser's content from 2021 onwards, bringing her more than a decade-long experience in journalism to the team. She has covered world affairs and several financial crises, and dove deep into SEO and coding to make BrokerChooser's content more accessible to users.
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