Can You Sell Short at Tradestation?
If you want to short stocks, TradeStation is a broker you should look at. At TradeStation, you can open short positions on stocks, and there are some useful tools to help you do this. Here’s what you need to know:
Selling Short on the Browser Platform
At the top of TradeStation’s web platform, there’s a green Trade button. Click it to open the broker’s order form. The order form appears just below the green Trade button and replaces it.
On the order form, look for the red Sell Short button. It’s right next to the blue Buy button. To place a short order, use the red Sell Short button.
The rest of the process is the same as for any trade. Enter the ticker symbol or company name, choose how many shares, pick your order type, select routing, set the duration, and choose your account if you have more than one at TradeStation.
To limit your maximum loss on a short trade, you can use a bracket order when you set up your short sale. TradeStation’s software lets you do this. Click the OCO/OSO tab at the top of the order ticket and select the bracket order you want. You can send a buy stop loss order together with your sell short order. The buy stop order will close out your short position if the stock price goes above the amount you choose.
Short Selling on the TradeStation Desktop
TradeStation also has an advanced desktop trading platform called TradeStation 10. This software has even more tools. There are three different order tickets, and while they look a bit different, most features are the same. Each one has a red sell short button, and you can use bracket orders, too.
TradeStation has the TradingApp® Store, a place to get add-ons for the desktop platform. One free app is the Intraday Short Locate tool, which helps you find shares to short if they are not easy to borrow. With this tool, you don’t have to call the trade desk. Short locate requests from the app are good for one trading day only.
The short locate app may not work on the latest version of the TradeStation desktop program (TradeStation 10). You might have to install an older version to use the app.
Short Selling with the TradeStation App
You can also short stocks and ETFs using TradeStation’s mobile app. In our testing, the app was easy to use but also has some advanced order options.
From a stock’s profile, tap the green Trade button at the top. This opens the trade ticket. Near the top, you can switch between buy and sell. To short, choose sell.
On the mobile trade ticket, there are two tabs at the top: one for standard orders and one for OCO/OSO. Bracket orders are built into the standard tab, so you don’t have to use OCO/OSO to enter a stop loss with your short trade. Just scroll down and switch on the stop loss. You can also add a take profit order.
The mobile app lets you pick from several routing choices for short sales, like AMEX, EDGA, and NYSE.
There are lots of time-in-force options, including extended-hours, 3 min (the order cancels after 3 minutes), FOK, and IOC.
Tradestation Short Selling in Simulated Mode
TradeStation lets you practice with paper trading on all three platforms. On the login screens, there’s an option to trade in simulated mode. The demo trade ticket has all the same features as live mode—routing, duration, and trade types.
If you want to practice or learn how shorting works, TradeStation’s simulated mode is a good way to try it. You can buy to cover in practice mode, too.
Tradestation Short Selling with Option Contracts
Shorting stocks and funds isn’t the only way to bet against them. The options market gives you more ways to take bearish positions. For example, buying a put or selling a call is a bearish trade. If you think XYZ stock will fall, you can short the stock or go to the options market and sell a call contract or buy a put.
These option trades don’t use margin interest, and you don’t have to worry about buy ins. But if you sell contracts, there is assignment risk.
TradeStation’s software also has several built-in option strategies. Some of these make money if the underlying stock goes down. These multi-leg trades include diagonals and collars.
Tradestation Short Selling with Futures
TradeStation also offers futures contracts. The futures market gives you another way to take short positions on the stock market. Some futures are based on the stock market, and these can be used for bearish trades.
For example, the S&P 500 E-Mini futures contract (ticker symbol ES) can be shorted. This lets you bet against the S&P index. To close out the trade, buy to cover—just like with stocks.
All three TradeStation platforms can be used to trade futures. There is also a fourth, a dedicated futures trading system. You can use any of them to trade futures contracts.
To enter a trade, type the contract’s ticker symbol. You’ll also need to select the expiration date. Some platforms will show different expiration dates when you enter the symbol. If you need to enter the expiration manually, type the month and year after the symbol. For example, M means June, so ESM24 is the S&P 500 E-mini contract that expires in June 2025.
Tradestation Short Selling Fees
TradeStation doesn’t charge extra for taking short positions instead of long positions. The commission for stock and ETF trades is $0. There is a $50 annual inactivity fee, but you can avoid it with a $2,000 account balance or 5 trades per year.
Option trades have no base fee, but there is a 60-cent per-contract fee. Futures and futures options are $1.50 per contract per side (micro futures are $0.50).
Alternative For Shorting
For short selling, a great alternative broker is Charles Schwab. It
has a number of advantages: a better range of shortable products, the best trading platform,
and a virtual trading.
Learn more...
Get Charles Schwab For Free
Visit Schwab Website
TradeStation Short Selling Summary
TradeStation gives customers several ways to make bearish trades on stocks with low transaction costs. With simulated trading, you can practice order types and trading methods.
Updated on 6/27/2025.
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.
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