What is “Short-Selling”

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I just cannot, for the life of me, understand how you make a profit by it.

In: Economics

37 Answers

Anonymous 0 Comments

The concept involves borrowing a security, and selling it

At that point you need to repay the lender a number of shares. If the price of those shares decreases, you can buy them back for less than you sold them for, turning a gross profit on the trade (before margin interest is subtracted).

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