Glossary

What is Short selling?

Risk & strategy

Selling an asset you have borrowed, hoping to buy it back cheaper later. Losses can be large if the price rises instead.

Think of it like: Selling an umbrella you borrowed, planning to buy one back after the rain.
Real example: Sell at 100, buy back at 90: a profit of 10 before costs. If price rises to 120 instead, you lose 20.
Lesson: Long and short Practise it now: Follow the Sun Practise it now: Order Up!

Related words

All 189 words in the glossary