Short selling

Short selling offers the opportunity to sell a stock at a higher price, and then buy it back at a lower price in the future.

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Investors are familiar with the strategy that says to "buy low, sell high", but what about the reverse – "sell high, buy low"? That is the basic premise behind short selling. While you may be intrigued by its potential to help you profit from a stock's decline, it is important to first understand how the short sale process works.

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