What Is Short Selling?
Definition and plain-English explanation of "Short Selling"
Short selling is a trading strategy where an investor borrows shares and immediately sells them, hoping to buy them back later at a lower price and profit from the difference. It is a way to profit from falling stock prices. Short selling carries theoretically unlimited risk (prices can keep rising indefinitely) and is typically used by experienced traders and hedge funds.
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Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.