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What is shorting_

What is shorting?

  • Short selling (or ‘shorting’) inverts the most basic rule of investment, which is to buy low and sell high.
  • Investors who short sell bet on stocks they believe will go down.
  • Short selling is risky and complicated, but the returns can be very big.

An investor who short sells borrows shares from a broker at current market price and agrees on an expiration date (the date by which the shares should decline in value).

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