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GlossaryGeneral Trading

Short Selling

Borrowing an asset to sell it at high prices, anticipating buying it back at lower prices for a profit.

Detailed Definition

In short selling, a trader bets on price declines. They borrow shares or contracts from a prime broker and immediately sell them in the open market. If the asset plunges, they repurchase it at the cheaper price, return the borrowed shares, and pocket the difference as profit.

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