Skill
Short Selling
Finance and Accounting
Short selling is an investment strategy in which a trader borrows shares of a stock and sells them, betting the price will fall so they can buy them back later at a lower price and pocket the difference. It is used by traders, hedge funds, and speculators to profit from declining markets or to hedge other positions, but it carries theoretically unlimited risk since a stock's price can rise indefinitely. Short sellers must also pay borrowing fees and can be forced into a 'short squeeze' if the price rises sharply.
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