Oct 8, 2025 · Shorting is also known as margin trading. Traders borrow money from the brokerage firm using the investment as collateral. Investors must meet the minimum …

"Shorting" or "going short" (and sometimes also "short selling") also refer more broadly to any transaction used by an investor to profit from the decline in price of a borrowed asset or …

Jul 4, 2025 · Shorting a stock means opening a position by borrowing shares that you don't own and then selling them to another investor.

One strategy to capitalize on a downward-trending stock is selling short. This is the process of selling “borrowed” stock at the current price, then closing the deal by purchasing the stock at a …

Aug 22, 2024 · Shorting a stock is the opposite of being "long," which means to own an asset. The basic principle underlying investments in long stock is to buy low and sell high.

Apr 3, 2025 · When you short a stock, you’re betting on its decline, and to do so, you effectively sell stock you don’t have into the market. Your broker can lend you this stock if it’s available to …

Feb 13, 2025 · Short selling is an advanced trading strategy where you borrow shares of a stock, sell them at the current price, and hope the price falls so that you can repay the borrowed …

Mar 12, 2025 · When you buy a stock – or "go long," in trader-speak – you're betting that the share price will rise. Shorting a stock is the exact opposite. When you short a stock, you're …

Nov 20, 2024 · Shorting involves borrowing a security, selling it on the open market, and then repurchasing it later at a lower price to return to the lender. Essentially, a short seller is betting …

Jul 30, 2024 · To short a stock, a trader initiates a position by first borrowing shares from a broker before immediately selling that position in the market to other buyers. To close out the trade, …