Short selling is a strategy where an investor borrows a financial asset, such as a cryptocurrency or stock, and sells it with the expectation that its price will decline. Later, the investor repurchases the asset at a lower price to return it to the lender, pocketing the difference as profit. This approach is risky, as losses can be substantial if the asset's price rises instead of falls. In the crypto/fiat exchange arena, short selling is often used by traders to capitalize on market downturns or hedge against potential losses in other investments.
Short Selling
Short Selling
Last Updated: January 11, 2026
Short selling is betting on a price drop to profit.