Td bank shorts

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Investors appear more bearish on Canada-based lender Toronto-Dominion TD than any other bank in the world. Here's a closer look at what's going on. Short selling, also known as shorting, refers to investors borrowing stock to sell with the goal of buying it back later at a lower price and returning it to the lender, pocketing a profit. Traders engage in short selling when they expect a company's stock price to decline, and want to make money if that happens. TD is being targeted possibly because of its planned takeover of US regional bank First Horizon, its exposure to Canada's weakening housing market, and its ties to troubled US lender Charles Schwab, per Bloomberg. But sentiment has turned against regional banks following the collapse of Silicon Valley Bank, and TD's shareholders aren't so enthusiastic about the deal anymore. Meanwhile, TD's exposure to Canada's housing slowdown is also eroding investors' confidence in the bank.

Td bank shorts

Part of it has to do with the general skittishness toward the banking sector after three U. And there are few signs Canadian lenders have any of the liquidity issues that investors have zeroed-in on recently. By that measure, TD is third among the top 20 U. TD is widely expected to renegotiate the deal after the recent bout of turmoil among U. So far, the TD short has been a winner. Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings. This website uses cookies to personalize your content including ads , and allows us to analyze our traffic.

Here's what's going on, and why traders are shorting Toronto-Dominion Bank. Do I need a margin account?

Learn more about TD Direct Investing. Short selling? Shorting a stock? What are the types of strategies? Do I need a margin account? How does all this work?

Want to discuss? Please read our Commenting Policy first. If you get Global News from Instagram or Facebook - that will be changing. Find out how you can still connect with us. Investors do this by borrowing a number of shares from a firm and selling them at the purchase price, promising to pay back that borrowed stock at a future date when they hope the share value has fallen — thus netting the difference in price as profit. The collapse of Silicon Valley Bank last month and fears of a spreading crisis among other regional banks in the U. TD Bank is also in the midst of acquiring regional U. Outside the U. Cheng says that all Canadian lenders have at least some exposure to the housing market through their mortgage businesses. Home values have also gone through a steep correction in the past year, Cheng notes, though there are early signs the price declines are stabilizing in some housing markets this spring.

Td bank shorts

Part of it has to do with the general skittishness toward the banking sector after three U. And there are few signs Canadian lenders have any of the liquidity issues that investors have zeroed-in on recently. By that measure, TD is third among the top 20 U. TD is widely expected to renegotiate the deal after the recent bout of turmoil among U. So far, the TD short has been a winner. Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

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You can opt-out at any time. It indicates the ability to send an email. Facebook Email icon An envelope. Here's a closer look at what's going on. Whether you're new to self-directed investing or an experienced trader, we welcome you. Try refreshing your browser, or tap here to see other videos from our team. View more popular questions. What is Short Selling? It indicates a way to close an interaction, or dismiss a notification. Search Submit search Quick Search. May be used to balance out other risks within your portfolio. Search financialpost. While there is no set limit on how long you take to replace the shares you borrowed, your lender can force you to close the position and replace the shares you borrowed.

Investors appear more bearish on Canada-based lender Toronto-Dominion TD than any other bank in the world. Here's a closer look at what's going on. Short selling, also known as shorting, refers to investors borrowing stock to sell with the goal of buying it back later at a lower price and returning it to the lender, pocketing a profit.

Find out how you can still connect with us. Advertisement 3. Canada poised for a 'very hot' housing market this spring. Introduction to short selling. An investment strategy that uses borrowed money could result in far greater losses than an investment strategy that does not use borrowed money. Learn what short selling is and why it is used by investors with a margin account. Find answers here. Whether you're new to self-directed investing or an experienced trader, we welcome you. If done carefully, short selling may be a way to hedge a strategy to offset the risk of unfavorable price movements. This is called going long. Related article. Please read our Commenting Policy first. By that measure, TD is third among the top 20 U. The hope is to rebuy and replace the stocks they borrowed at a lower price. So how does it work?