I just cannot, for the life of me, understand how you make a profit by it.
In: Economics
Super simplified and ignoring regulations and stuff, you basically borrow a stock from somebody for a set amount of time. You then sell that stock. At the end of the set time, you have to buy the stock back and give it back to the person you borrowed it from.
If the price has gone down in the meantime, you get to keep the difference. If the price goes up, you lose the difference.
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