Short selling is a strategy where you aim to profit from a decline in an asset’s price. Whereas most investing involves buying an asset and selling it later at a higher price, short sellers ... Short selling, as opposed to a long position, is an investment strategy with the underlying motive of "buying low and selling high." Investors who short-sell stocks expect share prices to drop in the future and aim to capitalise on this prediction. Short selling, also known as shorting a stock, is a trading technique in which a trader attempts to generate profits by predicting a stock's price decline. While the technique is commonly used to short stocks, it can also be applied to other securities, such as bonds and currencies. Within the context of a stock, short selling is a bet by the trader that the stock's price will fall in the future due to multiple reasons, from flawed business models to falsified accounts. The trader is ... What Is Short Selling? Short selling is a trading strategy where investors speculate on a stock's decline. Short sellers bet on (and thus profit from) a drop in a security’s price.
