Short Sale Definition
Short Sale
DEFINITION
A Short Sale is a day trading technique used to make money by the drop in stock prices as apposed to the rise in stock prices. The trader will barrow the shares from the market with the promise to return them at a later time. The trader then sales the borrowed shares, and waits for the price to drop. This is called "Covering a Short Position". You purchase the shares back at a lower fee and then return the borrowed shares to the market.
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Terri J Lee S.
Arizona Member
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