short selling definition

short selling

Profiting from an anticipated drop in the price of a commodity, financial instrument, or security by (1) borrowing and selling it now, or by (2) selling a firm promise (futures contract) to deliver it on a later date at the current (or a specified) price. In either case, the seller counts on buying the item at a cheaper price to return (with a fee) or deliver it. A short seller is a 'bear.' Also called selling short.

short selling is in the Commodities & Precious Metals Trading, Currency Trading, Investing and Securities & Futures Trading subjects.

short selling appears in the definitions of the following terms: selling short and stock index option

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