Selling: Short

Your broker finds shares to lend you from another client's portfolio or an institution.

Shorting is significantly riskier than standard investing due to its unique mechanics: MFA - Updated Intro to Short Selling Research Paper Selling Short

You immediately sell these borrowed shares at the current market price. Wait: You wait for the price to drop as you predicted. Your broker finds shares to lend you from

You buy the shares back at the (hopefully) lower price. minus fees. ⚖️ Risks and Costs

You return the shares to the lender and pocket the difference as profit, minus fees. ⚖️ Risks and Costs