Trading

Short selling

Selling borrowed shares in anticipation of buying them back later; losses can be substantial or theoretically unlimited.

Plain-English context

Why it matters

This term is part of the language used to describe ownership, pricing, transactions and investment outcomes.

EXAMPLE

If short selling appears in a quote, filing or account screen, read it together with the instrument, timeframe and calculation method.

COMMON MISTAKE

Assuming Short selling has one universal interpretation without checking the source, rules, timeframe or methodology.

Use current definitions. Product terms, tax treatment and market rules can change. Confirm important details with official disclosures, regulators and regulated providers.