What is short selling?

What is short selling?

Short Selling

When a trader borrows a security, sells it on the open market, with the plan to buy it back later for less money, this is called short selling. People who sell short bet on a security's price going down and make money when it does. Short selling comes with a lot of risk. You can make a lot of money, but you can also lose a lot of money very quickly.

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