Short answer
Short selling is betting that a stock will go DOWN. You borrow the stock, sell it now, and buy it back later — hoping for a lower price.
Short selling is betting that a stock will go DOWN. You borrow the stock, sell it now, and buy it back later — hoping for a lower price.
It's risky because losses can be unlimited. Knowing it exists helps you understand why stocks sometimes fall sharply on no news.
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