Short selling is a trading strategy used by investors to profit from the decline in the price of a stock or other financial asset. Here’s how it works:
Borrowing Shares: An investor borrows shares of a stock they believe will decrease in value, typically from a broker.
Selling the Shares: The borrowed shares are sold in the market at the current price.
Waiting for Price Drop: The investor waits for the stock price to fall.
Buying Back Shares: Once the price drops, the investor buys back the same number of shares at the lower price.
Returning Shares and Profiting: The shares are returned to the broker, and the investor pockets the difference between the selling price and the buying price as profit.
Borrowing Shares: An investor borrows shares of a stock they believe will decrease in value, typically from a broker.
Selling the Shares: The borrowed shares are sold in the market at the current price.
Waiting for Price Drop: The investor waits for the stock price to fall.
Buying Back Shares: Once the price drops, the investor buys back the same number of shares at the lower price.
Returning Shares and Profiting: The shares are returned to the broker, and the investor pockets the difference between the selling price and the buying price as profit.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.