Sunday, 20 May 2018

Short selling

“Short selling” (also known as “shorting,” “selling short” or “going short”) means the sale of a security or financial instrument that the seller has borrowed to make the short sale. The short seller believes that the borrowed security’s price will decline, enabling it to be bought back at a lower price. The difference between the price at which the security was sold short and the price at which it was purchased represents the short seller’s profit (or loss, as the case may be).

Leave a Reply

Your email address will not be published. Required fields are marked *