™Selling 100 borrowed shares at $50 and covering at $40 gives $1,000 gross profit before borrowing, fees and payments owed; a rising price can create losses beyond proceeds.
Trading
Short selling
Selling borrowed shares in anticipation of buying them back later; losses can be substantial or theoretically unlimited.
Plain-English context
Put the definition to work.
Gross sale proceeds do not cap losses; borrow, recalls, distributions and forced covering can change net results.
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