Short - Selling

Shorting is significantly riskier than standard investing due to its unique mechanics: MFA - Updated Intro to Short Selling Research Paper

You buy the shares back at the (hopefully) lower price. Selling Short

You immediately sell these borrowed shares at the current market price. Wait: You wait for the price to drop as you predicted. Your broker finds shares to lend you from

Your broker finds shares to lend you from another client's portfolio or an institution. 📉 How Short Selling Works Short selling follows

Short selling is an advanced trading strategy where you profit if a stock's price . Unlike traditional "long" investing (buy low, sell high), shorting involves selling borrowed shares first and buying them back later at a lower price. 📉 How Short Selling Works Short selling follows a specific five-step lifecycle:

You return the shares to the lender and pocket the difference as profit, minus fees. ⚖️ Risks and Costs