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Short Selling Explained with Examples

From dailyfx.com

Short selling is somewhat of a polarizing activity as it involves betting against a stock or other asset; but it can also form part of a well-thought out trading or investment strategy. This article explains what short selling is, with the help of practical examples. Short selling is the process of borrowing an asset (normally shares) and immediately selling it in the open market with the view to purchase the asset back, at a later date, at a lower price before returning it to the lender. The ‘short seller’ receives the difference between the higher selling price and lower purchase price, minus any interest and fees. ... (full story)

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