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Short Selling

Short selling is a trading strategy, when an investor anticipates a decrease in share price and gets profit only when a shorted security falls in value. Short selling is another trading tool, which provides a sizable opportunity with high dose of risk. Traders can use it in their trading portfolio if it fits their investing style and risk tolerance.

Short Selling Explained

Short selling is a kind of trading strategy which can be used as a part of portfolio hedging strategy as well as for speculating in the market. Short traders follow some steps when selling short and try to benefit from selling overvalued asset which they don't own and was borrowed from broker.

Short Selling Conditions

Traders are not always able to short any asset they want, whenever they want. As there are some rules and conditions which restrict in stock markets. Investors also need to ensure high margin requirements and extra fees while shorting in stock markets. Meanwhile, nowadays CFD markets make it possible to sell short without any on top restrictions and rules.