Definition
Short selling is a trading strategy where investors borrow shares and immediately sell them, hoping the price will drop so they can buy the shares back at a lower price, return them to the lender, and pocket the difference. It's a way to profit from declining stock prices.
Formula
盈亏 = (卖出价 - 买入价) x 股数 - 借股成本
Example
An investor shorts 100 shares at $50, then buys them back at $40. The profit is $1,000 minus borrowing fees and commissions.
FAQ
What is Short Selling?
Selling borrowed shares with the intention of buying them back at a lower price.
How do you calculate Short Selling?
A common formula for Short Selling is: 盈亏 = (卖出价 - 买入价) x 股数 - 借股成本
Why is Short Selling important?
Short Selling helps investors evaluate trading strategies and make more informed decisions.