Short Selling Explained | Stock Trading Strategy
Short Selling Explained
Short selling is an investment or trading strategy that speculates on the decline in a stock or other security's price. It is an advanced strategy that should only be undertaken by experienced traders and investors.
In short selling, a position is opened by borrowing shares of a stock or other asset that the investor believes will decrease in value by a set future date—the expiration date.
The investor then sells these borrowed shares to buyers willing to pay the market price.