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to sell short

to sell short

3 8.1
To sell stocks you do not own hoping to buy them back at a lower price
  • phrasal verb
  • /sɛl ʃɔrt/
  • Specialized
translation icon : vender en corto
  • I knew it had been dumped on the market, so I sold short.
  • sell short stocks
  • sell short shares
  • investors sell short

But naked short selling means selling a stock short without first borrowing it.

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Examples

  • Yes, they worked to defend the IPO price, but remember they sold 62M shares short.

    Blog text (19)
  • A smart move would be to sell 28 gilt short at, say, 99.10.

  • - Sell short, buy long.

  • Why would we sell them short like that?

    Blog text (26)
  • Someone will get rich selling it short...

    Blog text (15)
  • Well, the stocks that you sold short gave you extra cash that you can buy.

  • They sell into it and they sell short in order to make money.

  • In other markets where traders can sell short, there are banks that guarantee the trades.

    Blog text (20)
  • Buy long, sell short.

  • Traders often choose to sell short when they believe a stock's price will fall in the future.

Synonyms

to short
vsto sell short
  • Specialized
15 8.6

Sell a stock or asset you do not own, hoping to buy it back cheaper

is the phrasal form used to express the same selling action in finance

Antonyms

1.0

Have something that is yours

long
  • Specialized
127 7.7

Holding a stock or commodity because you expect its price to rise

Surface Forms

sell short infinitive
sold short past
sold short past participle
selling short present participle
sells short third person singular

Morphology

sell + short

The components 'sell' (transfer/offer) and 'short' (insufficient, too little) give a clear clue: combined they suggest treating something as less than it deserves (selling for less/undervaluing). However, the extension from a literal economic sense to the figurative meaning of underestimating someone's ability is a metaphorical shift that may not be fully predictable to a B1 learner without prior exposure, so it is only partially transparent.

Etymology

Sell short may come from the idea of being short — not having something. In old markets a trader would sell shares he did not own and was therefore short of them, hoping to buy them back later at a lower price and make a profit. So sell short now means to sell something you do not own and try to buy it back cheaper.