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Quantitative Finance · Glossary

What is Short sale?

Definition 6.7 Markets I: The Ecosystem and Exchange-Traded Markets · Chapter 6 — Financing: Repo, Securities Lending and Prime Brokerage

A short sale is the sale of a security the seller does not own. To deliver at settlement the seller borrows the security, and later buys it back to return it: it profits if the price has fallen.

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