the.com/shorting
betting a price will fall, then profiting from the fall you predicted.
means borrowing an asset, selling it now, and buying it back later at a lower price to pocket the difference.
from traders in 17th-century amsterdam sold shares they did not yet own, a practice so disruptive that dutch authorities banned it in 1610, the first recorded short-selling crackdown in history.
loss ceilinglosses are theoretically unlimited, unlike buying
borrowed sharesyou must return the exact shares eventually
squeeze riskrising prices force shorts to buy, fueling more rise
for instance
gamestop 2021 — reddit traders squeezed shorts, melvin capital lost billions
big short 2008 — michael burry shorted subprime mortgages before the crash
george soros 1992 — shorted the pound, made about 1 billion in a day
volkswagen 2008 — brief squeeze made vw the world's priciest company