In simple terms, short selling is achieved by borrowing a security from an institution that currently owns it, such as a pension fund, selling this for the current market price and then repurchasing the security at some point in the future to give it back; hoping that you will be able to buy it at a price that is lower than what you sold it for and so, if this is enough to cover the ‘interest’ cost of borrowing it, make a profit.

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