What is short selling – TroubleinthepeaceS


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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).

Opposite:

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.

Bottom line?

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.

See also: What is FOB Price – Difference Between Cif Price and Fob Price

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.

Category: FAQ

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