short selling

"Short selling" is a strategy used in financial markets to profit from a decline in the price of a security.

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Definition

C1Financial Markets

(technical, investment)A strategy where an investor borrows a security, sells it, and aims to buy it back later at a lower price to return it and make a profit.

Example

  • By short selling the stock, the investor hoped to profit from its anticipated decline in value.
  • Short selling can be risky if the stock price rises instead of falling.

Similar

Terms that have similar or relatively close meanings to "short selling":

short salego shortsell downshort astock loansell sideshort downbear marketsell away