Market Foundations ·
Beginner⏱ 10 min readShort Selling
What you will learn
What short selling is and how it makes money
Why the US allows it when many markets do not
The real advantages and disadvantages of short selling
Buying a stock and waiting for the price to rise is the standard play. Short selling reverses it - you sell first and buy later, profiting when the price falls. It is controversial, but it serves real functions in a healthy market.