Financial Education

Short Selling

Selling borrowed shares to profit from price declines

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Trading

Short Selling

Selling borrowed shares to profit from price declines

Definition

Short selling involves borrowing shares, selling them, and buying back later to return to lender. Profits from price declines, losses from increases. Unlimited loss potential with limited upside.

Related Topics

#bearish strategy #borrowed shares #unlimited risk #market pessimism

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Category: Trading

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