short sell

Profit from decline

Short sell is a trading strategy where you sell something you don't own, betting its price will fall.

The seller borrows shares, sells them at the current price, then hopes to buy them back cheaper later to return to the lender—pocketing the difference.

If the price rises instead, losses are theoretically unlimited.

Hedge funds short sell stocks they believe are overvalued.

The noun is short sale; to have such a position is to be short.

Related

margin call · trader · market order · arbitrage · securities · hedging · broker · market volatility · position · equities · GameStop · meme stocks · hedge fund · derivatives · day trading · stocks · futures · bonds

Categories
Opposites
market position direction

short sellgo long

Run deep for pass

buy · long position · long · purchase · cover

investment holding strategy

short sellvalue investing

Buying underpriced stocks fundamentally

accumulate · invest · hold · strategic investment

market sentiment expression

short sellbuy the dip

Invest during market declines

go long · back · long position · call option · support

Family

short, sell, short-selling, shorter, shortest, shortly, shortness, shorten, shortened

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