• sevenapples@lemmygrad.ml
    ·
    1 year ago

    Shorting a stock is the opposite of buying it. When you buy a stock, you expect that its price will increase, therefore you will be able to sell it for profit. When you short a stock, you will profit if the price decreases in the future.

    How? You borrow a stock and are obliged to return it some day. You sell the stock when you get it, and buy one from the market when you're due to return it. If the price has went down, then you'll have profited.