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Trading Terms

Selling Short

Short selling is a common practice in the world of finance that involves selling a security and then borrowing it with the intention of replacing it at a lower price. This strategy is often used in futures trading, where the seller takes on the responsibility of the seller in a futures contract. This allows investors to profit from a decline in the price of a security, but also comes with risks. Short selling requires careful consideration and understanding of market trends.
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A comprehensive resource containing definitions and explanations of terms, concepts, and jargon used
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