The selling of instruments which are not held, i.e. with no prior long position, in anticipation of a fall in prices. The action of buying back to cover the short position is known as shortcovering.
Short selling is the selling of a security that the seller borrows and does not necessarily own.
Selling an asset (security or commodity) benefiting from the high price that it is supposed to fall and buying it later at a smaller price.
selling a security you don't own (borrowed from your broker) with the intention of buying it at a lower price to replace the borrowed shares. Short sellers are betting the price will go down.
Selling of securities by the seller who do not have the securities on hand. According to the SET regulation, the short seller must place a minimum deposit as margin, as specified by the SET with the securities lender. Proceeds from the short selling must be kept by the broker as security until the borrowed shares are returned on or before a particular date. Until the delivery of the securities, any rights offered by the company to its shareholders, e.g., dividends, rights issues, etc., must be returned to the owner of the securities.
Selling a security one does not own.... more on: Short selling
See short selling in the Stocks/Bond Guide.
sale of securities or commodity futures not owned by the seller (who hopes to buy them back later at a lower price)
this strategy is based on finding overvalued companies and selling the shares of those companies, even though the investor does not own these share
Short selling involves selling shares that an investor does not own. When an investor sells short, they borrow shares of a security from a broker and sell those shares in hopes that the market for that security will fall. They are then obligated to buy back those shares at market price. Thus, short selling investors hope to buy back shares for less than they sold them for and profit from the difference. Shorting is not allowed in the Marketocracy competition because its use it highly restricted in a mutual fund setting.
Borrowing a security or commodity futures contract from a broker and selling it, with the understanding that it must later be bought back and returned to the broker. Short selling is a technique used by investors who try to profit from the falling price of a stock. The investor's broker will borrow the shares from someone who owns them with the promise that the investor will return them later. The investor immediately sells the borrowed shares at the current market price. If the price of the shares drops, he/she "covers the short position" by buying back the shares, and his/her broker returns them to the lender. The profit is the difference between the price at which the stock was sold and the cost to buy it back, minus commissions and expenses for borrowing the stock. But if the price of the shares increases, the potential losses are unlimited.
Short selling is the selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short selling is a legitimate trading strategy. Short sellers assume the risk that they will be able to buy the stock at a more favorable price than the price at which they sold short.
Is the act by which a speculator or risk manager sells an instrument at a high price with the intent of purchasing it lower. . Technical Analysis Is the study of market behavior which tries to discern patterns which enhance position taking. Among some of the tools and indicators used are: charts, volume, open interest, put to call ratios, moving averages, and oscillators.
A person selling shares which he or she does not own at the time of sale.
Establishing a market position by selling a security one does not own in anticipation of the price of that security falling.
The sale of securities that the seller does not own. This is a speculative practice done when the seller believes a stock's price is going to fall and the seller will be able to cover the sale by buying the security back at a lower price. The profit is the difference between the initial selling price and the subsequent purchase price. It is illegal for a seller not to declare a short sale when placing the order.
The sale of security which the seller does not own. The sale is made in the belief that the stock price will fall at which point the seller will buy to cover his short sale.
The sale of borrowed securities, their eventual repurchase by the short seller at a lower price and their return to the lender.
The sale of a security which the seller does not own in the belief that it will fall in value. Short-selling requires securities lending and various forms of financial obligation on the part of the short seller.
Sale of securities the seller does not yet own. The seller's aim is to be able to cover the position at a cheaper price before delivery is due.
The act of borrowing stock to sell with the expectation of price reduction with the intention of buying it back at a cheaper price.
This is the opposite of "going long" or buying a stock. A transaction that consists of selling a borrowed stock in the hope the price of that stock will go down so that the shares owed the broker can be replaced at a lower cost than the owed shares, thus resulting in a gain.
While an investor's mindset is usually to buy a stock first and then sell it later, short selling actually is just the opposite; sell now and then buy it back later. The short seller borrows the shares from a securities firm with the anticipation that they will decline in value. If the investor is correct, the shares can be bought back at a lower price and the investor realizes a gain. However, if the shares are bought back at a higher price, a loss will be realized.
Selling an asset that you do not own, or taking a short position.
Selling a security that the seller does not own. Securities are borrowed from another party and sold with an obligation to replace the sold securities in the future. For example, a fund manager sells 1000 borrowed shares of XYZ for $10 per share. Later, the price declines and the manager is able to purchase 1000 shares of XYZ at $9 per share. The manager replaces the borrowed stock and earns $1000 by short selling.
Borrowing a security (or commodity futures contract) from a broker and selling it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker. Short selling (or "selling short") is a technique used by investors who try to profit from the falling price of a stock.
A speculator who "sells short" sells stock that they do not own in the expectation of being able to buy it cheaper later on. This is a high-risk strategy and losses (or gains) can be substantial.
On the Hollywood Stock Exchange, almost anything goes, including using the failures of others to make a profit. If the next big blockbuster film looks to be an overhyped, overrated mess, you can still make a profit by shorting. Short selling allows you to profit when prices of MovieStock, StarBonds, and other securities go down. The simple rule behind short selling is that if you think a security is overvalued and the price is going to go down, you should sell the security "short." The value of a shorted security is the (Purchase Price x # of Shares) + Profit. The profit on a shorted security is (Purchase Price x # of Shares) - (Current Price x # of Shares). So total value is (purchase * shares) + [(purchase * shares)-(current * shares)].
The action of a person selling shares which he does not own at the time of selling.
A strategy of attempting to capitalize on expected decrease in security's price. A security which is expected to decline in price is borrowed, sold on an open market, and bought back later (ideally, at a lower price) to be returned to the lender. If the declining price expectation was indeed correct, the short seller pockets the difference between proceeds of the short sale and the cost of purchasing back the security.
The sale of a security which is not owned by the seller. The "short seller" borrows stock for delivery to the buyer, and must eventually purchase the security for return to the lender.
This transaction begins with the sale of stock and concludes with a purchase. Also known as "shorting" a stock. Short selling occurs when an investor sells stock that he or she does not own (almost always with the expectation that the price of the stock will decrease). In order to sell short, an individual investor must be able to borrow the shares that are being sold short (standards are different when brokerage firms are shorting stock for their own accounts). This is generally done by the customer's brokerage firm. The customer "covers" the short position when he or she subsequently buys an equal number of the company's shares.
An agreement between an investor and their broker, where the investor sells a security that is not owned by the investor. In order to cover their sell, the investor needs to purchase the security at a future date. On a short sell, the investor is expecting the security to decline in value, thereby allowing them the ability to purchase or cover their sell at a lower price. For example, an investor short sells a security at $100 and the price declines to $90. If the investor purchases the security at $90, then they make a profit of $10 per share.
The sale of a security which the seller does not own. This is a speculative practice done in the belief that the price of a stock is going to fall and the seller will then be able to cover the sale by buying the security back at a lower price. The profit would be the difference between the initial selling price and the subsequent purchase price. It is illegal for a seller not to declare a short sale at the time of placing the order.
Establishing a market position by selling a futures contract.
The sale of shares or futures that a seller does not currently own. The seller borrows them (usually from a broker) and sells them with the intent to replace what s/he has sold through later repurchase in the market at a lower price.
Borrowing a security from a broker and selling it, with the understanding that it later must be bought back, hopefully at a better price and returned to the broker. The major danger in "selling short" is that if the price of the stock goes up, you will have to pay more than you sold it for in order to cover your short position.
The practice of selling securities which you do not own.
A strategy in which a speculator sells a commodity or security that he or she does not own in order to profit from a falling market
Selling stock not owned in anticipation of buying it back later at a lower price for a profit. It involves borrowing stock (usually from the broker) to sell short and using margin to finance the borrowing.
Selling stock that you do not own.
Selling a contract with the idea of buying it back at a later date.
selling a futures contract with the intention of buying back the offset at a future date or making delivery. Usually anticipates declining prices
This is when a dealer believes that the price of a particular share is going to fall and can see the opportunity to make a quick profit. Under the old settlement system, at the start of the account he would sell more shares than he owned in the hope that he would be able to buy the difference at the new lower price. If the shares did fall then he would make an instant profit but if the shares rose he would have to buy the extra shares at the higher price. This opportunity is less available now with the advent of rolling settlement.
The practice of borrowing a stock on collateral, immediately selling it on the market with the intention of buying it back later at a lower price.
Borrowing a security, or commodity futures contract, from a broker and selling it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker. An investor who “short sells” a stock expects it to fall in price.
Selling a security that the seller does not own but is committed to eventually repurchasing. It is used to capitalize on an expected decline in the security's price.
The sale of a security made by an investor who does not own the security. The short sale is made in expectation of a decline in the price of a security, which would allow the investor to then purchase the shares at a lower price in order to deliver the securities earlier sold short.
The sale of a security that is not yet owned, in the expectation that its price will fall so that it can be bought back at a later date.
Selling more of an asset than the investor owns in order to make a profit once the price falls. This is usually not permitted for authorised funds and pension funds but may be a strategy of hedge funds. The fund will need to borrow stock to cover a short position.
The sale of a security made by an investor who does not own the security, but who has borrowed it from a broker. The short sale is made in expectation of a decline in the price of a security, which would allow the investor to then purchase the shares at a lower price and return them to the broker
The selling of borrowed assets with the aim of repurchasing them at a later date for a lower price. Short selling can also be done through the use of derivatives.
It is the act by which a speculator or risk manager sells an instrument at a high price with the intent of purchasing it lower. This is particularly the case for the speculator.
Short sellers speculate on falling prices. They sell energy deliveries that they do not own in the hope that they can buy them back later at lower prices.
Selling a security with the idea of buying to offset it at a later date.
Selling a futures contract with the idea of delivering on it or offsetting it at a later date.
(go to top) Selling a security that the seller does not own but is committed to eventually repurchasing, with a view to profiting from an expected decline in the security’s price.
A short seller borrows the shares from a securities firm with the anticipation that they will decline in value. If the investor is correct, the shares can be bought back at a lower price and the investor realizes a gain. However, if the shares are bought back at a higher price, a loss will be realized. The firm effectively borrows the shares from another client's account or from the firm's own account. The firm then lends the shares to the short seller; no stock certificates are issued, stock certificates don't change hands, and lenders of the stock are not indentified by name. (Margin borrowing may not be suitable for all investors. When you use margin, you are subject to a high degree of risk. Market conditions can magnify any pontential for loss. The value of the securities you hold in your account, which will fluctuate, must be maintained above a minumum value in order for the loan to remain in good standing. If it is not, you will be required to deposit additional securities and/or cash in the account or securities in the account may be sold.)
In finance, short selling or "shorting" is a way to profit from the decline in price of a security, such as stock or a bond.