How to make short selling
In this article, you will learn all you need to know about short selling. Specifically:
Understanding what is short selling How to make a short sale Short selling in the Vietnamese market Famous short selling transactions
We will go into detail now.
You are viewing: What is short selling?
What is short selling (or short selling)?
Short selling is the activity of making a profit from the discount of securities, such as stocks or bonds.
Usually when you invest, you buy a stock, hold it, and hope to profit from the stock price increase (and the dividend received).
With short selling, you expect the stock price to go down.
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On the other hand, Soros’ hedge fund raked in more than $16 billion in net profit after this crisis.
Although you can see the huge profits that can be made from short selling, in reality, this is not a “game” for the individual investor.
Personally, I believe, you should not do short selling.
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In some special cases, if you hold a very large portfolio (tens of billions), then you can use short selling as a hedging measure to preserve profits and minimize risks.