What is the benefit of selling short in the stock market?
when would i sell short a stock? when its down, or up?
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Answer by MarcapPub
Short Selling occurs when you sell a stock today (that you do not own) at its current market value, with the hopes of buying it back at some future date for less than you sold it for. The trick in short selling is to pick a stock today that will most likely drop in value over the next few weeks or months. The brokerage firm will actually lend you the stock to sell, but you will have to eventually return the stock to them, regardless of what you have to pay to buy it back.
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