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short selling

short selling

3 6.6
Selling shares you do not own to buy them back later at a lower price to make a profit
  • noun
  • /ʃɔrt ˈsɛlɪŋ/
  • Specialized
translation icon : venta en corto
  • Many investors engage in short selling to profit from falling stock prices.
  • short-selling stocks
  • short-selling fund

So you know, OK, yeah, naked short selling happens.

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Examples

  • You can short sell futures. You can sell futures without buying them, which is called short selling, and later buy within your expiry period to cover your positions.

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  • All evidence is pointing to speculation and trading of hedge funds and naked short selling as the real money makers.

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  • And he says the reason it's going back up is because the guys made money during short selling as Apple came down.

  • As a result, he took advantage of short selling to limit his overall exposure, like taking insurance.

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  • Now they will scramble to limit short selling or find other emergency measures that will protect their credit.

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  • The consequences of short selling or defaulting later will be much more severe.

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  • During the near term, a continuation of this short-selling activity could create a steady headwind for BTU.

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  • Short-selling is only profitable when the shares are already overpriced, pushed into instability by the "long-horn" herd.

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  • The hedge fund's short selling strategy helped it to gain significant returns during the market downturn.

  • Before entering short selling, make sure you understand the risks involved in borrowing securities.

Synonyms

short sale
vsshort selling
  • Specialized
1 7.8

Selling shares you do not own to buy them back later at a lower price

includes similar trades on physical commodities, so has a wider scope

Antonyms

long
  • Specialized
127 7.7

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

How Risky

short selling
  • Specialized
3 6.6
naked option
  • Specialized
9.9
long
  • Specialized
127 7.7
covered option
  • Specialized
8.6

Surface Forms

short selling singular

Morphology

short + selling

The compound transparently signals a kind of selling (selling + short), so learners can infer it relates to selling connected with a 'short' position, but the precise mechanism—selling securities you do not own and later buying them back to profit from price falls—is technical and not derivable from the common meanings of the parts. Because understanding requires specific financial knowledge/jargon rather than pure compositional inference, the expression is only partially transparent to a B1 learner.

Etymology

The noun short selling comes from a simple image: you borrow shares and then sell them now even though you are short and do not own them. You hope to buy the shares back later at a lower price to return them, so the phrase means 'selling what you don't own to profit if the price falls'.