[Myla S]

Hello wonderful people.

I am wondering whether someone could help me?

What trading instrument do you use to short stocks in the near term (0 to 3 days)? Contracts for difference seems to be the most advertised option but I’ve not actually used them before. Is that would people would go for or are there other (possible better) avenues?

Thank you in advance!

Myla

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[Christian Harris]

If you want to short-sell, derivative products such as spread bets and CFDs are the most popular because you can also use leverage.

Remember that CFD trading does not involve acquiring real assets and incurs spreads and overnight fees, so shorting is more expensive than buying real stocks.

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[James Barra]

Hi Myla,

Thanks for your message.

I recommend reading our guide to short selling. We break down the mechanics of how it works and walk through suitable trading products, including CFDs.

Spread betting is also an option as Christian has mentioned, but where are you based? I ask because while spread betting is permitted and popular in certain countries, notably the UK and Ireland, it’s not allowed in many jurisdictions.

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[Myla S]

Hello.

I am in Brazil. Do you know if spread betting is allowed here? I can’t seem to find a platform offering it. Everyone seems to offer CFDs.

Myla

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[James Barra]

Hi Myla,

I’ve been researching this and haven’t found anything definitive to suggest spread betting is legal and tightly regulated in Brazil, especially compared to the UK. This may explain why you are struggling to find platforms offering it.

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