That is if he shorted like those shorts, he will lose his pants and shirts and thus it is also equivalent to selling his pants and shirts, hahaha.

So those who want to short the market must make sure, he has sufficient to wear if the market goes up instead of down. Hehehe.

Laulan      ( Date: 23-Aug-2010 10:43) Posted: Your friend might have been right if he was referring to those who shorted Genting at 95 cts. and covered them at 1.68 easily losing his shirts and pants if he shorted many lots. Hahaha. iPunter      ( Date: 23-Aug-2010 10:21) Posted: My Starbucks buddy says naked short means       to sell even one's shirt and clothes...            made me choked on my coffee...

thanks alexchia, that sound pretty clear for me. Appreciate that. 

happy trading.

There are 2 types of short sell.

Naked Short and CFD Short.

Naked Short is selling shares that you do not own. You can perform naked short sell with your existing trading account. However, with naked short, you must cover your short by the end of the day, else you can be fine $1000 per day for long as your short is not covered.

CFD Short is borrowing stocks from your CFD brokerage to short sell. With CFD Short, you can hold your short positions overnight, but there will be commission plus financial cost for everyday your short is not covered. You must open a CFD account to do CDF Short Selling and must fund your account first before you can start trading.

Hope this helps. Good luck.