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FC MARKETS

Markets, money and the economy, explained for American investors

Topic

Stock Market Basics

2 articles

Stocks

Short Selling Explained: How Shorting Works, Short Squeezes and the Risks

Short sellers bet that a stock will fall by borrowing shares, selling them and hoping to buy them back cheaper. The idea is simple, but the mechanics, costs and risks are not. Here is how shorting works, what a short squeeze is, why losses can be unlimited, and what short interest does and does not tell you.

6 min read

Investing Basics

How to Read a Stock Quote: Bid, Ask, Spread, Volume and More

A stock quote packs a dozen numbers into a few lines, and each one tells you something different about price, cost and activity. This guide explains the bid, ask, spread, last price, volume, day's range, 52-week range, market cap and other common fields, and how to use them without over-reading any single number.

6 min read