What is shorting or short selling?

 Short selling, also known as shorting or going short, is a trading strategy in which an investor sells an asset that they do not own, with the intention of buying it back at a lower price in the future. The investor profits from the difference between the price at which they sold the asset and the price at which they subsequently buy it back, known as the "spread."

Short selling is typically used when an investor believes that the price of an asset is likely to decline. It is a way to profit from falling prices, rather than only being able to profit from rising prices as is the case with traditional "long" positions.

To execute a short sale, the investor must borrow the asset from another investor or financial institution and sell it on the market. When they eventually buy the asset back and return it to the lender, they close their short position. Short selling carries risks, including the possibility of unlimited losses if the price of the asset increases significantly. It is important for investors to carefully assess the risks and potential rewards before engaging in short selling