Short selling is a trading strategy that involves borrowing and selling securities that a trader believes will decrease in value. The trader then buys back the shares at a lower price to return them to the lender and profits from the difference in price.
Short selling is commonly used in the industry as a way to hedge against potential losses or to speculate on the future performance of a company or stock. It can also be used as a means of market manipulation, which is why it is often closely regulated.
Investors who short sell are often looking to profit from a decline in a particular company or market, or to mitigate risk in their overall investment portfolio. Short selling can be risky, however, as there is no limit to how much a stock can increase in value, which can result in a significant loss for a short seller.
Short Selling
Economy Term
Short selling is a trading strategy that involves borrowing and selling securities that a trader believes will decrease in value. The trader then buys back the shares at a lower price to return them to the lender and profits from the difference in price.
Short selling is commonly used in the industry as a way to hedge against potential losses or to speculate on the future performance of a company or stock. It can also be used as a means of market manipulation, which is why it is often closely regulated.
Investors who short sell are often looking to profit from a decline in a particular company or market, or to mitigate risk in their overall investment portfolio. Short selling can be risky, however, as there is no limit to how much a stock can increase in value, which can result in a significant loss for a short seller.