short selling

Betting on decline

Short selling is a trading strategy where an investor borrows shares, sells them at the current price, then hopes to buy them back later at a lower price—profiting from the decline.

The borrowed shares must eventually be returned, so if the price rises instead, losses can be unlimited.

Short sellers bet against the company's stock.

Someone who short sells is said to be shorting a stock or going short.

mechanism

borrow

Obtain for temporary use

locate · recall · settlement · rebate · delivery · collateral

strategy

bearish

Expecting market decline

arbitrage · alpha · risk management · hedging · tactical

market

bear market

Prolonged securities decline

trading halt

profit

profit

Gain exceeding expenditure

  • lossesThings subtracted from standing
  • gainPositive return received
  • premiumAdded cost for better

decay · interest income

Categories
Opposites
market position direction

short sellinggoing long

Running a deep route

long position · stock ownership

transaction sequence

short sellingcash-and-carry

Pay upfront, transport yourself

market sentiment expression

short sellinggrowth investing

Buying stocks expecting rapid appreciation

value investing · going all in

Family

short, selling, shortness, shorted, shorting, short sale

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