expression

short selling

selling borrowed assets hoping to buy them back cheaper

In more detail

1. (noun) a trading strategy where an investor borrows shares and sells them, hoping to buy them back later at a lower price to make a profit

2. (noun) the act of selling borrowed shares in this way

Examples

1. Short selling became controversial during the financial crisis when investors bet against banks.
2. The trader engaged in short selling by borrowing 1,000 shares and immediately selling them at the current market price.

How to use short selling

Short selling is a technical financial term used in investment and trading contexts, referring to a specific market strategy that involves selling securities one does not currently own. It is typically used in formal financial discourse, investment prospectuses, and regulatory documents. The term carries a neutral descriptive tone, though it can have negative connotations in popular discourse due to its association with market volatility and speculation.

Common phrases

engage in short selling
short selling strategy
ban on short selling
short selling restrictions
profit from short selling
short selling activity

Synonyms

shorting · short sale · bearish bet · selling short

Opposites

long position · buying · going long

Word family

short seller (noun) · short (verb) · shorting (gerund)

A common mistake

Learners often confuse short selling with simple selling or assume it means selling something for a low price; it specifically requires borrowing the asset first and betting on price decline.

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