What is Short Selling?
Short selling is the process of borrowing an asset, selling it on the market, and aiming to buy it back later to return it. If the price falls between the sale and the repurchase, the difference is the gain; if it rises, the difference is the loss. Short selling usually requires a margin account and may involve borrowing fees, and brokers can force the position to close in some situations.
Why Short Selling matters
It is the mechanism behind every short position, and its borrowing and margin requirements add real costs and risks.
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