Traders who want to profit from a price decline in GameStop shares can short the stock through a variety of trading apps on both desktop and mobile devices. However, the potential for unlimited losses combined with the unpredictability of meme stocks makes this speculative strategy only suitable for traders who are confident in their market analysis and willing to manage risk with tools like stop-loss orders. How to short GameStop shares in the UK.
How to Short GameStop Shares in the UK: A Trader’s Guide
The 2021 rollercoaster ride of US video game retailer GameStopLink was a wake-up call for many novice investors who were drawn into the media hype with little or no understanding of the risks involved. Hyped by tips on web forums and enthused by their ‘David v Goliath’ battle with the big financial firms, they piled into the stock at the peak, often using borrowed money.
But the GameStop story raises serious questions about the ethics and legality of colluding online to push up share prices. And while it may have felt like a good way to get revenge on the big boys in the city, it also left retail investors out of pocket.
While the price of GameStop shares has been volatile, there are still opportunities to make profits by shorting the stock in the UK. Here are some tips to help you do so: