tastyworks Short Selling

TastyWorks Shorting Requirements, Short Locates, & Cost. How to Short Sell Stocks on TastyWorks in 2022

How to Short Stocks at tastyworks

With a brokerage account at tastyworks, you can make money when prices of securities (and futures) go down. If you think the financial markets are headed for a downturn, keep reading. Our guide will teach you everything you need to know.

Shorting Assets on tasty’s Desktop Platform

A good place to make bearish bets on assets is tasty’s desktop program. This is the only piece of software at tasty that includes bracket orders, which will prevent an infinite loss just in case an asset moves in the wrong direction and goes to infinity.

The first thing you want to do is enter a ticker symbol in the top of the platform. This isn’t the easiest thing to do because the search field isn’t clearly shown. It’s right next to the tastyworks logo in the upper-left corner.

Once you have the ticker symbol for the stock, ETF, or futures contract you want to sell, just click on a bid price that appears in the trading details next to the ticker symbol. An order ticket will automatically appear at the bottom of the screen. Clicking on the Buy button will fill it with green. If you click on Sell, it will appear red. To take a short position on an asset, you want to start with sell. Hopefully, the price will go down and then you’ll buy it back to earn a profit.

On the desktop platform, there is a gray Bracket button. If you click on this, you’ll get a pop-up window to place two more trades. These are buy-to-cover trades, one of which will close your position once the price goes too low and crosses a profit level.

tastyworks Shorting Stocks

The first buy order is a limit with a price below the entry price. The second is a buy-stop order that is placed above the market price. This is the stop-loss order that prevents losses beyond the stop price.

It’s possible to enter sell short orders for securities and futures on tasty’s mobile app and browser platform. However, these trading systems do not have bracket orders, so we recommend using the desktop program.

Open Account

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Short Locating Tools

tastyworks’s software unfortunately doesn’t display the number of shares available for shorting. The broker’s platforms also don’t have any short locating tools. If you’re unsure whether a thinly-traded security is available for shorting, you could try to place an order online. If the order doesn’t go through, you can give tasty a call at (855) 468-2789.

Bearish Option Plays

If you want to sell short a stock but can’t find enough shares available, you could take a look at the options market. Buying put contracts is a bearish bet (you make money if the stock price goes down), and tasty offers trading in options.

To purchase a put on tasty’s desktop platform, enter the required ticker symbol and then choose a single put (no spread) from the drop-down menu. It has a blue Go label. You can add multiple contracts if you wish on the order form. Bracket orders can be used for option trades as well.

Cost of Shorting

tastyworks does not charge extra commissions for short trades. This means you can get some very competitive prices on your bearish bets. Here are a few examples:

Stock trades (long or short): $0
Option trades (long or short): $1 (per contract) to open, $0 to close (+ 10¢ per contract)
Futures (long or short): $1.25 per contract, per side (+ 30¢ clearing fee, per contract)

tastyworks does pass on exchange and regulatory fees, and option assignments and exercises are $5 each.

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About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for Brokerage-Review.com, Chad can usually be found managing his portfolio or building a new home computer.