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Trading & Markets

What is Short Sell? And how it works?

Short Sell is an advanced trading method employed by traders who intend to make a profit from declining stock prices. Traders sell the shares that they don’t own and once the price declines, they buy it at a lower price. This has to be done during the trading session as they are selling stocks which they don’t own.

Traders also engage in this trading method to hedge an existing long position on a particular stock through derivatives or equity intraday.

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