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Short Selling

Short selling is betting a stock will fall: you borrow shares, sell them at today's price, and hope to buy them back cheaper later. The math is brutal — gains are capped (a stock can only fall to zero) while losses are theoretically infinite (it can rise forever). Professionals hedge with it; beginners usually get burned.

Example: Short 100 shares at $50 ($5,000); if it drops to $30, buy them back for $3,000 and pocket roughly $2,000 before fees.

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Educational content only — not financial advice.