How to Short Sell. Pros and Cons of Short Selling
What is short selling?
Put simply, short selling is when an investor borrows securities and sells them hoping to repurchase them at a lower price in the future, thus making a profit. This is what short selling is in a nutshell.
However, one must not oversimplify this investment strategy, as short selling not only comes with opportunities for significant profits – it also implies grave risks. Combined with several cons you might want to know about, short selling is an activity not to be taken lightly.