What does 'short selling,' often heard, mean?

Jiten171

In the cryptocurrency market, there is a term that everyone often hears, and that is "shorting"!

Actually, the concept of shorting is not difficult to understand! In general, when we want to make an investment, if you have a positive outlook on a stock or a futures contract, expecting it to rise, you buy it, right? You wait for it to rise, and then you sell it to make a profit. This is called "buying," "going long," or simply "long." Now, financial products can either rise or fall. What if I anticipate that a stock will fall? Can I still make money? It's quite simple; just reverse the order. Sell it first, and when the stock falls, buy it back, making a profit in the process. This is known as "shorting."

Of course, some people might make a finer distinction between shorting and selling short, but in most cases, these terms are used interchangeably.

Indra55

This is still very common in the cryptocurrency space.

Jafar224

It's something worth understanding.

Jatin255

So, this is what 'short selling' means!