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Trading

Short Selling

Selling borrowed shares to profit from a price decline.

In depth

You borrow shares from a broker, sell at current price, and aim to buy back later at a lower price (covering the short). Profit = sell price - buy back price. Risks: theoretically unlimited loss (stock can rise indefinitely), borrow fees, dividend payments owed to lender, and forced buy-ins if shares become hard to borrow.

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