Short selling is a trading strategy where an investor borrows a security and sells it, expecting the price to fall so they can buy it back at a lower price and return it to the lender. The investor profits from the difference between the sale price and the purchase price.
Short selling is a trading strategy used by investors to make profits from the decline in the price of a security. It involves selling a security that the investor does not own, but has borrowed from a broker, with the expectation that the price of the security will fall. The investor then buys back the security at a lower price, returns it to the broker, and pockets the difference.
Short selling is a risky strategy, as the investor is exposed to unlimited losses if the price of the security rises instead of falling. It is also a controversial strategy, as it can be used to manipulate the market and drive down the price of a security.
Short selling is used by investors to hedge their portfolios against losses, to speculate on the direction of the market, and to take advantage of market inefficiencies. It is also used by market makers to provide liquidity to the market.
Short selling is a complex strategy and requires a thorough understanding of the markets and the risks involved. It is important to understand the rules and regulations governing short selling, as well as the potential risks and rewards. It is also important to have a sound risk management strategy in place to protect against losses.