How to Short GameStop Shares in the UK: Beginners Guide
Dom Farnell
Co-Founder
Dom, a Co-Founder at TIC, is an avid investor and experienced blogger who specialises in financial markets and wealth management. He strives to help people make smart investment decisions through clear and engaging content.
Twitter ProfileAuthor Bio
Fact Checked
How we test
At The Investors Centre, we pride ourselves on our rigorous fact-checking process. To delve deeper into our meticulous testing procedures and discover how we ensure accuracy and reliability, visit our dedicated page on how we test.
Risk Warning
Please bear in mind that trading involves the risk of capital loss. 51% to 84% of retail investor accounts lose money when trading CFDs with the providers below. You should consider whether you can afford to take the high risk of losing your money.
Last Updated 08/01/2025
Have you ever wondered how traders profit when stocks like GameStop decline in value? Short selling allows you to take advantage of falling stock prices, and it has become particularly popular during GameStop’s dramatic market fluctuations.
GameStop rose to fame during the 2021 “meme stock” frenzy, experiencing wild price swings driven by retail traders and social media hype. For traders who anticipate the stock price will fall, short selling offers a way to potentially profit from that movement.
In this guide, I’ll explain how to short GameStop shares in the UK, step by step. We’ll also cover the risks you should consider before diving in—because short selling isn’t without its challenges.
Quick Answer: How to Short GameStop Shares in the UK
To short GameStop shares in the UK, you will need to use a trading platform that offers CFDs (Contracts for Difference). Simply open an account, find GameStop under the available assets, and place a sell order to open a short position.
What Is Short Selling?
Short selling is a trading strategy where you profit when the price of an asset drops. Here’s how it works:
- You borrow shares of a stock, such as GameStop, from a broker.
- You sell those borrowed shares at the current market price.
- Later, you buy the shares back at a (hopefully) lower price and return them to the broker.
- The difference between the sell price and the buy price is your profit.
Think of it like this: imagine borrowing a rare collector’s item from a friend, selling it at a high price, and later buying it back at a lower price before returning it. The difference in price is your gain.
Why Short GameStop Shares?
GameStop has become infamous for its price volatility, making it an attractive target for short sellers. Its stock value has often been driven by market hype rather than underlying business fundamentals, which can create opportunities for traders who believe the price will decline.
However, shorting GameStop is highly speculative. The same factors that cause its price to drop can just as easily lead to sudden surges, creating significant risk for short sellers.
Can You Short GameStop Shares in the UK?
Yes, GameStop shares can be shorted by UK traders, but it’s important to understand how this works. GameStop is listed on the New York Stock Exchange (NYSE), and although it’s a US-based stock, many UK trading platforms provide access to international markets.
Rather than shorting the physical shares directly, most UK traders use Contracts for Difference (CFDs) to short GameStop. CFDs allow you to speculate on the price movement of the stock without actually owning it, making them a convenient option for short selling.
Platforms That Allow Shorting in the UK
Several popular trading platforms in the UK enable short selling of GameStop shares through CFDs. Here are a few reliable options:
- eToro: Offers GameStop CFDs with low fees and an intuitive interface, making it beginner-friendly.
- IG: Provides a professional-grade platform with advanced charting tools for experienced traders, along with GameStop CFDs.
- Plus500: Features commission-free CFD trading, including access to GameStop and other international stocks.
Each of these platforms offers the tools necessary for short selling, including leverage, stop-loss settings, and market analysis features.
Regulatory Considerations in the UK
In the UK, short selling via CFDs is regulated by the Financial Conduct Authority (FCA). This ensures that platforms adhere to strict rules designed to protect traders. However, it’s essential to be aware of the risks involved, as CFDs are leveraged products that can amplify both gains and losses.
Before shorting GameStop or any stock, ensure the platform you choose is FCA-regulated to guarantee a secure trading environment.
How to Short GameStop Shares: Step-by-Step Guide
Step 1: Choose the Right Platform
Before you begin, select a trading platform that meets your needs. Consider these key factors:
- Fees: Look for platforms with low or no commissions on CFD trades.
- Ease of Use: A user-friendly interface is crucial, especially if you’re new to short selling.
- Tools and Features: Access to stop-loss settings, leverage options, and market analysis tools can help manage risk.
Popular platforms like eToro, IG, and Plus500 are excellent options for shorting GameStop shares in the UK.
Step 2: Open an Account and Deposit Funds
Once you’ve chosen a platform, follow these steps to set up your account:
- Register: Sign up by providing personal details and verifying your identity, as required by FCA-regulated platforms.
- Deposit Funds: Add money to your trading account using a payment method like bank transfer, debit card, or e-wallet. Ensure you deposit enough to meet margin requirements for short selling.
Step 3: Locate GameStop Shares
After funding your account, search for GameStop shares or CFDs on your platform.
- Most platforms have a search bar where you can type “GameStop” or the ticker symbol (GME).
- Once located, click on the stock to view its trading options, including short selling.
Step 4: Place a Short Trade
Here’s how to execute your short trade:
- Select the Asset: Click on GameStop or the associated CFD to open the trading window.
- Choose Trade Size: Determine how much capital you want to allocate to this position.
- Set Stop-Loss and Take-Profit Levels:
- Stop-Loss: Automatically closes your position if the price rises to a certain level, limiting your losses.
- Take-Profit: Closes the trade when the stock price hits your target, locking in profits.
- Confirm the Trade: Once you’ve adjusted all settings, click the “Sell” or “Short” button to open your position.
Step 5: Monitor Your Position
Shorting is an active trading strategy that requires ongoing attention. To manage your trade effectively:
- Stay Updated: Regularly check market news and price movements. GameStop’s volatility means sudden price changes are possible.
- Adjust Stop-Loss Levels: If the trade moves in your favour, consider tightening your stop-loss to protect profits.
- Close the Trade Strategically: When you’re satisfied with your profit or market conditions change, close the trade to lock in gains or minimize losses.
By following these steps, you’ll be better prepared to short GameStop shares responsibly. Remember, short selling involves significant risk, so always trade with caution and use risk management tools.
Risks and Rewards of Shorting GameStop Shares
Rewards of Short Selling
Short selling GameStop shares can be a lucrative strategy for traders who anticipate a price decline. Here are the main rewards:
- Potential for High Profits: If GameStop’s stock price drops significantly, short sellers can realize substantial gains. The more the price falls after opening a short position, the greater the profit margin.
- Hedging Capabilities: Short selling can also act as a hedge for long positions in other stocks or sectors. For instance, if you own a portfolio of retail stocks, shorting GameStop could help offset potential losses during market downturns.
Risks of Short Selling
While the potential rewards can be appealing, short selling carries significant risks, particularly with a highly volatile stock like GameStop.
- Unlimited Loss Potential: Unlike buying a stock, where losses are limited to your initial investment, short selling exposes you to theoretically unlimited losses if the stock price surges. GameStop’s price volatility during the “meme stock” frenzy highlights this risk, as prices skyrocketed unpredictably.
- Margin Requirements and Interest Fees: Most platforms require margin accounts for short selling. This means you’ll need to maintain a minimum account balance, and you may incur interest fees for borrowing shares.
- Extreme Price Movements: GameStop’s history of rapid price increases, fuelled by social media-driven hype, makes it a particularly risky stock to short. Traders should be prepared for sudden and unexpected market shifts that can result in significant losses.
Platforms to Use for Shorting GameStop Shares in the UK
AvaTrade provides everything a beginner needs to start their trading journey, including a user-friendly platform, a robust demo account, and extensive educational resources. These features make it a standout option for those new to trading.
However, the inability to onboard UK clients is a significant limitation. If you’re based outside the UK, AvaTrade is a fantastic platform to build confidence and knowledge in trading.
If AvaTrade is available in your country, my advice is simple: open a demo account, explore their educational tools, and take your first steps toward becoming a confident trader.
| Platform | Fees | Ease of Use | CFD Availability | Regulation | Key Features |
|---|---|---|---|---|---|
| eToro | Low spreads | Beginner-friendly | ✅ Yes | FCA-regulated | Social trading, copy trading, educational tools |
| IG | Competitive fees | Advanced tools | ✅ Yes | FCA-regulated | Advanced charting, news analysis, wide range of markets |
| Plus500 | No commission | Intuitive interface | ✅ Yes | FCA-regulated | Simple platform, risk management tools, mobile-friendly |
- eToro: Ideal for beginners, with a straightforward interface and educational tools.
- IG: Perfect for experienced traders seeking advanced charting tools and insights.
- Plus500: Offers a simple, no-frills approach with zero commissions and an easy-to-use platform.
Each platform has FCA regulation, ensuring a secure trading environment for UK traders.
Final Thoughts: Should You Short GameStop Shares?
Shorting GameStop shares can be a profitable strategy if executed with careful planning and risk management. In this guide, we’ve covered the steps to short GameStop shares in the UK, the platforms you can use, and the potential risks and rewards.
However, GameStop’s history of extreme price volatility highlights the importance of fully understanding the risks of short selling. The potential for unlimited losses, combined with the unpredictability of meme stock movements, makes this strategy suitable only for traders who are prepared and confident in their market analysis.
If you’re confident in your research and willing to manage the risks effectively, shorting GameStop shares could be a strategic move. But always trade responsibly and use risk management tools like stop-loss orders to protect your capital.
FAQs
In the UK, most traders short GameStop shares using CFDs (Contracts for Difference) rather than directly shorting physical shares. This method is more accessible and flexible for retail traders.
Shorting GameStop shares carries significant risks, including unlimited loss potential if the stock price rises, margin requirements, and interest fees. GameStop’s volatility adds another layer of unpredictability, making careful risk management essential.
Popular platforms for shorting GameStop in the UK include eToro, IG, and Plus500. These platforms offer CFDs, intuitive interfaces, and FCA regulation for a secure trading experience.
Short selling is generally considered an advanced strategy due to its risks. Beginners should fully educate themselves about the process, risks, and tools like stop-loss orders before attempting to short stocks like GameStop.
Trade Smarter, not Harder
- Copy Trading
- Competetive Fee's
- Multi Asset Platforn
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Short GameStop Today!
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.