Can I short sell on Thinkorswim?

To open a short stock position using the thinkorswim® paperMoney® platform, traders need to first ensure they have a margin-approved account. This is crucial because short selling involves borrowing shares, which can only be done through a margin account.

Once a margin account is set up, traders can proceed to the thinkorswim® paperMoney® platform to open a short position. They should select the stock they wish to short and enter the desired number of shares.

After initiating the short sale, traders must continuously monitor their position. This involves keeping track of the stock's price movements and market conditions to ensure the trade remains profitable.

Monitoring a short position is particularly important because any upward movement in the stock's price can lead to losses. Traders should be prepared to close the position if the stock's price rises too much.

Closing a short position involves buying back the borrowed shares. This can be done through the thinkorswim® paperMoney® platform by selecting the "buy to cover" option.