Short Selling the Market
Nearly every investor, and certainly every trader, has heard of selling short. For those who might want to refresh what they already know – or as background for those who aren’t familiar with the practice – selling short is when you sell a security you don’t own, with the stipulation that you will purchase the security at a later date. This commitment, to buy a security, stock, bond, or some other financial instrument at a future date, would hopefully occur when the price is lower. This is the opposite of what most investors or traders normally do, which is to…
