Risk

What is Short Selling?

Betting that a stock will go down

Full Explanation

Short sellers borrow shares, sell them, and hope to buy them back cheaper later. Huge risk — stocks can theoretically rise forever, creating unlimited losses.

Pro Tip

Short selling carries unlimited downside risk and is generally not suitable for beginners. This is educational context only — not advice.

Related Risk Terms

Volatility

How wildly a stock's price swings

Margin

Borrowing money from your broker to buy more stocks

Hedge

An investment that offsets losses in another

Beta

How much a stock moves compared to the overall market

View all Risk terms →

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