Time pass

Key Takeaways
Short selling (or shorting) refers to the act of selling an asset with the goal of buying it back later at a lower price.

Typically, shorting is done with borrowed funds, meaning it requires an initial margin (collateral), maintenance margin, and interest payments.

Short selling is widely used by traders and investors who wish to speculate on the markets or as a hedging strategy to offset potential losses in other assets.

Shorting downsides include the potential for unlimited losses if prices keep rising, liquidations, risk of short squeezes, and additional costs like borrowing fees.