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Also known as shorting a stock, short selling is designed to give you a profit if the share price of the stock you choose to short goes down -- but to lose money for you if the stock price goes up. What is Short Selling, How It Works, and Why Use It ... Short selling (or "selling short") is a technique used by people who try to profit from the falling price of a stock. Short selling is a very risky technique as it involves precise timing and goes contrary to the overall direction of the market.

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