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Short selling
Short selling is selling a stock that an investor does not own. How does this happen? Basically you can do this by lending other people stock. With short selling, you can profit when the stock price fall. For example, if current stock price is $100 and you know / predict tomorrow price will fall to $95, borrow other people stock and sell the stock for $100. The next day, buy the stock again at $95 and return the stock to the owner. This will make $5 profit when the price drops. However, if the price goes up, then you’ll lose your money.
Short selling is dangerous because if you are wrong predicting the price, you can lose all your investment money. If you short sell, price can also go down to $0 (limited profit), but stock can go up unlimited (unlimited loss). So I don’t recommend this for beginner.



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