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Short Selling

A risky and speculative practice involving the sale of a stock that the seller doesn't possess. The seller is effectively betting that the price of the stock is going to fall and that they will be able to buy the stock back at a lower price.

Additional Comments:

There is big money to be made on the short side of the stock market. But the public is not short-sell minded. We advise a toe-to-the-water approach. Try it slowly and see. It's not so cold. In fact, it's fine once you get in. You gain confidence that you can handle any market direction

But know the ropes first. Read through Short Selling 101 for a background in short selling.

Related Terms:

Short Straddle
A short straddle is the simultaneous sale of a put and a call on the same ...

Go Short
To sell securities, options, or futures with the intent to profit from a drop in the ...

Covered Put
A put option position in which the option buyer is also short the corresponding stock or ...

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