There are differences but not as noticeable, being these technical differences and not as pronounced as we will see:

  • Short sale: When the broker owns the shares, and the investor requests them to sell them and then buy them from a minor and obtain a difference and then return the shares to the broker.
  • Sale on credit: Similar to the short sale although with leverage. It allows buying shares for an amount more significant than they have. So with 1000 dollars, they can invest in stocks for 10,000 dollars and get a vast difference. For this operation, the broker requires a guarantee, and if the price goes against it, the broker may demand guarantees, or else it may close the position with losses.
  • Bare sales: Another option similar to short selling. They can sell the financial asset without buying it and then buy it at a lower price and thus obtain a difference. In this case, they do not require guarantees.

Do short sales move the real value of the quote?

Yes, by opening a short sale or a  credit sale, they are selling the shares in the market, placing a sales order. There are the so-called ” bassists ” that with their way of operating grant liquidity to the markets.

When there is terrible news, be rumors or confirmation, for example, about Tesla, which can lead to a sharp drop in the market value of their shares. Those who own Tesla shares go out to sell, and the bears if they decide to go out and buy to collect benefits. To get benefits they have to buy instead of selling, investors who go out to sell Tesla shares are selling it to the bears instead of the

Bull market (ตลาดกระทิง, which is the term in Thai) ; what generates that the actions suffer from technical rebounds in a  downtrend.