Short selling is the sale of a security that is not owned by the seller or that the seller has borrowed in the hope that the price will go down.
 | | | Short Selling | | Short selling is the sale of a security that is not owned by the seller or that the seller has borrowed. Short selling is motivated by the belief that a security's price will decline, enabling it to be bought back at a lower price to make a profit. Short selling may be prompted by speculation, or by the desire to hedge the downside risk of a long position in the same security or a related one. Since the risk of loss on a short sale is theoretically infinite, short selling should only be used by experienced traders, who are familiar with the risks. | | | | | Related to "Short Selling" | | | The Basics Of Short Selling | | Short sellers enable the markets to function smoothly by providing liquidity, and also serve as a restraining influence on investors' over-exuberance. Read More | | | | | | | | | | | | | Long-Short Ratio | | The amount of a security available for short sale compared to the amount of that security that is actually short-sold. Read More | | | | Net Long | | Net long refers to a condition in which an investor has more long positions than short positions in a given asset, market, portfolio or trading strategy. Read More | | | | | | | Short Squeeze | | A short squeeze is a situation in which a heavily shorted stock or commodity moves sharply higher, forcing more short sellers to close out their short positions and adding to the upward pressure on the stock. Read More | | | | | | | | | | Follow Us: |  |  | | | | | | |
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