What is the definition of a Short?
- Posted on November 21, 2019
- Financial Terms
- By admin admin
The term 'Shorting a stock ' is widely used in the finance world and it means that someone is betting that the company will lose money and the person is positioned to profit if the stock loses value.
This is a tricky way to invest and is usually only available to those investors trading with derivatives or in hedge funds and prop trading desks.
Being short is done by borrowing the asset, selling it in the market, buying the asset back at a lower price then returning it to the original lender and keeping the difference.
Do you want to learn how to short a stock? Watch the video below.
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