Short selling means borrowing shares, selling them, then buying them back cheaper to pocket the difference. If the price rises instead, you lose money. You have a time limit to return the borrowed shares.
What does it mean to short a stock? Save this video because I'm going to tell you. Let's say you have a friend who has $1,000 worth of silver coins. You believe the price of silver is going to go down, so you ask to borrow his coins. Your friend lets you borrow his coins and you turn around and sell them for the going price of $1,000. Then what do you know? The price of silver does go down and you buy the same set of silver coins back for $500. You've made $500 profit and you return the coins to your friend. Shorting a stock works pretty much the same way, which is all well and good unless the price of silver increases. There's a timeframe when you have to give those silver coins back to your friend. If at the end of that time the price of silver has increased, you still have to buy those coins back and return them to your friend. If that happens, you lose money because you have to buy the coins back at a price higher than what you originally sold them. So with stocks, you borrow shares from your brokerage firm and then you sell them immediately on the market. If the price goes
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