What is Shorting?
5paisa Research Team
Last Updated: 07 Aug, 2024 09:19 AM IST

Content
- Introduction
- What is shorting a stock?
- Why Sell Short?
- Pros and cons of Short Selling
- Additional Considerations in Short Selling
- Short Selling Metric
- Ideal Conditions for Short Selling
- Real-World Example of Short Selling
- The Risk of Short-Selling
Introduction
Investors employ various strategies to generate profits from their investments. Over time, many tools have been developed to reduce losses and attract more traders. Although the traders' tactics or strategies frequently benefit them, they can also backfire in certain circumstances. One such strategy that has gained traction is short selling or shorting. This blog explains shorting definition and what is short selling in the stock market.
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Frequently Asked Questions
If the investment is profitable, an investor can hold a short position for as long as they need, whether for a few hours or weeks.
The 'long position' is the opposite of shorting, which refers to owned stocks.