DeutschWhat is Short Selling?
Short selling involves selling an asset that the trader does not own, with the expectation that its price will fall.
Explanation:
Traders borrow the asset to sell it, planning to buy it back at a lower price and pocket the difference.
Practical Example of Short Selling:
An investor believes a stock’s price will decline and sells it short. When the price drops, they buy it back at a lower price and profit from the difference.
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