Most investors buy shares in the hope that they will rise in value – as such they are said to be “long”.

However there are a few professional investors who bet against individual shares and try to make money when the price falls – these are known as “short sellers” or “shorts”. The process of shorting involves borrowing stock and then selling it on, hoping the price will fall before it has to be returned to the original lender plus a lending fee. It is risky because should the stock rise in price mid-way through a short trade it can be difficult and expensive for the short sellers to buy it back to make good on the original stock loan.

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