Short Selling at ETRADE
Bullish trades are only half the equation in the stock market. Bearish trades can also generate profits, and thanks to ETRADE’s short-selling tools, it’s easy to take short positions quickly.
Preparing to Short at ETRADE
To short stocks or funds at ETRADE (or any other broker), your account must be a margin account rather than a cash account. Converting is simple at ETRADE. On the website, click on Customer Service at the top right. Then, on the customer-service page, locate the link to upgrade to a margin account. If you have multiple accounts, select which one to upgrade. Each account that will place short trades must be upgraded.
Also note that FINRA rules require a margin account to have at least $2,000 in equity before a short trade can be made.
Locating Assets to Short
ETRADE’s website includes screeners for stocks, ETFs, and options. Besides shorting stocks and funds, long puts and short calls are bearish plays.
In our test of ETRADE’s screeners, we found them user-friendly with many variables to choose from. A few examples include:
- 13 day EMA
- Unusually High Call Volume
- Extended Hours Overnight Trading
- Morningstar Rating
- Market Return Within Category
- P/E Ratio
- 52 Week High
A search can be saved or exported to a spreadsheet.
Employing a Security’s Profile
At ETRADE, the profile pages for stocks and ETFs have details that bear traders may find useful. For instance, there’s a Trefis price tool showing an estimated price for a ticker plus a projection for the overall market. From TipRanks, there are sentiment indicators from a variety of sources. These indicators combine over a period and show bullish or bearish signals.
An earnings-move page displays the next earnings date and the implied price change. Analyst reports in pdf form are also available, and some of these include trade guidance.
On the Fundamentals tab of a profile, ETRADE shows the short interest of a stock or ETF as a fraction of the float (the number of shares open for public trading).
Using the Margin Calculator
ETRADE’s website offers a margin calculator that short sellers might want to use. It’s on the Portfolios page under the Accounts tab (click on Margin). You must have a margin account to access it.
Alternative For Short Sellers
For short traders, a good alternative broker is Charles Schwab. It has a number of advantages: richer
selection of shortable products, the best trading tools, and paper trading.
Learn more...
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How to Short Stocks at ETRADE
To short a stock or ETF at ETRADE, bring up the standard order ticket and pick “Sell short” in the Action menu if you’re using the website or the main mobile app. If you don’t see this option, your account isn’t a margin account.
On the Power platform, you’ll only see the standard Sell button (there’s no separate sell short command).
After choosing the correct action, the next step is selecting the price type (market, stop, or limit). Finally, specify the duration (day is the only choice for a short order).
On the Pro desktop platform, click Short once all trade details are entered.
After the Trade
To close a short position, pick “Buy to cover” in the Action menu on the standard ticket (website or app). Pro uses a dedicated “Cover” button, while Power just uses the regular buy button.
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Cost of Shorting at ETRADE
ETRADE does not charge any special commissions for short sales. Option contracts, whether bought or sold, cost 65¢ each.
ETRADE doesn’t publish a list of hard-to-borrow (HTB) stocks, but it does charge interest to borrow these securities. The brokerage has been sued over its HTB interest rates, so be sure you know the rate for any stock you plan to short. You may need to call ETRADE to confirm the specific fee.
Updated on 9/12/2025.
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