Traders and active investors who would rather buy than sellshort in order to take advantage of any setback in the Asian stock rally may want to consider a leveraged, inverse alternative: the ProShares UltraShort FTSE China 25 ETF (NYSE: FXP).
Buyers of traditional convertibles often sell issuers' shares short in order to offset the option element and leave themselves with what amounts to a pure bond.
You can then place a limit-sell order a few pips below that resistance level so that your shortorder will be filled when the market moves up to that specified price or higher.
As Adam Levitin of Georgetown University Law Centre and Susan Wachter of the University of Pennsylvania pointed out in a recent paper on the causes of the housing bubble in America, it is impossible to borrow the Empire State Building in order to sell New York real estate short.
This decision to target customers that were focused on long-term results enabled Baupost to distinguish itself from private equity firms that would sell winning investments quickly in order to justify the high short-term performance they needed to raise more capital from investors.
Figuring he'd spotted an institution working a big sellorder with a clever computer program, Park sold the stock short every time the seller showed up.