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Short selling
In one line: Selling something you don't own yet, hoping to buy it back cheaper later.
Selling a futures contract or other instrument with the idea of delivering on it or offsetting it at a later date.
— CFTC Glossary
In simple words: You sell now and settle later, hoping the price drops in between.
With stocks, you borrow shares, sell them, and later buy them back to return them. If the price fell, you keep the difference. If it rose, you pay the difference.
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Last checked: 2026-11-04 · Educational, not financial advice.
Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.