What is Short Trading? 📉💰
Short trading, or short selling, is a way to profit when a stock's price goes down.
How It Works:
1. Borrow the stock from a broker 🏦
2. Sell it at the current price 💸
3. Wait for the price to fall ⏳⬇️
4. Buy it back at the lower price 🛍️
5. Return the stock to the broker 🔁
6. Keep the difference as profit 💵
Example:
You short a stock at $100 📊
The price drops to $70 📉
You buy it back and earn $30 profit 🤑
Risks ⚠️
If the stock goes up instead, you can lose a lot 💀
Losses are unlimited, since the stock can keep rising 🚀
Pro Tip:
Short selling is best for experienced traders who can handle high risk and fast decisions 🧠⚡