A “naked sell” is where you short a stock. You are basically selling a stock you don’t own in the hopes of buying back that imaginary stock later for a lower price.
Now if I sell a stock I don’t own in order to purchase a different stock which I don’t have money to pay for, would that effectively be a “naked buy” per the OP? I think this is what margin trading is all about.
Someone please help me understand.
A “naked sell” is where you short a stock. You are basically selling a stock you don’t own in the hopes of buying back that imaginary stock later for a lower price.
Now if I sell a stock I don’t own in order to purchase a different stock which I don’t have money to pay for, would that effectively be a “naked buy” per the OP? I think this is what margin trading is all about.