Trading
Short Selling
Shorting
Definition
Borrowing shares to sell now and buy back later at a lower price
Explanation
Short selling is betting that a stock will decline. You borrow shares from your broker, sell them at the current price, then buy them back later (hopefully cheaper) to return. If the price drops, you profit from the difference. If it rises, you lose money. It's risky because losses are theoretically unlimited.
Example
Short at $100 → Buy back at $80 → $20 profit per share