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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Related in General Trading
Limit Order
An order to buy or sell a financial asset at a designated price or better, ensuring strict price execution.
Support and Resistance
Key price levels where an asset's price tends to stop falling (support) or stop rising (resistance).
All-Time High (ATH)
The highest recorded price level an asset has ever reached in its trading history.