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expression

short selling

selling borrowed assets hoping to buy them back cheaper

In Banking & Finance

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

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.

Register: technical

Common phrases

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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