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Tesla is a company associated with innovation and futuristic technological solutions.
With the rise of easy-to-use trading platforms like Robinhood, an abundance of new investors have started day trading.
Some investors believe that Tesla stock is heavily overvalued due to speculation and the influx of new investors.
One of the main reasons why some investors believe the price to be too high is that Tesla hasn’t delivered the revenue growth and results, that the price suggests.
If you are one of those investors who believe the price of Tesla stock will fall, you can profit by shorting the stock, if you are correct, of course.
Shorting Tesla can be done easily through the IQ Option platform; here’s how.
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How to short Tesla stock on IQ Option
To short Tesla stock on IQ Option, you first need to open an account.
Once inside the IQ Option trading platform, you have to open up the Tesla asset.
To do this, press the plus icon in the top menu, which will open up the asset selection menu.
Select Stocks on the left side of the assets window, search up Tesla and press it.
You will now be on the page for Tesla, where you can trade the stock.
On the right side of the screen, you have two options – Buy or Sell.
To short Tesla, type in the amount you wish to invest, set an auto-close, or leave it at 50%, press Sell, and then press Confirm Selling.
Your short position will open immediately if the market is open. If the market is closed, you can place a pending order, which will execute as soon as the market opens.
You can see when the market for a specific stock opens in the top right corner of the particular stock under ‘Asset opens in.’
As you trade CFDs when you buy and sell stocks on IQ Option, your position will, by default, be traded at a 5x leverage.
A 5x leverage means that your results are multiplied by five. For example, if Tesla falls 1% while you have an open short position on the stock, your position will rise 5%.
Likewise, if Tesla rises 1% while you have an open short position on the stock, your position will fall 5%.
To learn more about fees when shorting Tesla stock on IQ Option, check out our CFD trading fees explanation.
Disclaimer: Investerfy.com is not a financial advisor. All content on this site is for educational purposes only. Make sure you understand the risk associated with investing and trading. This post is not advice on how or when you should trade a stock, nor is it making any prediction of how the stock price will move in the future.
