Lesson 10, What is short sale? A way to profit on down market!

Short selling is another way to profit from stock when its price is decreasing. Just like when we buy a stock at lower price and try to sell it at higher price. With short sale, you borrow shares from your broker and sell it first (anticipating a decrease in share price) and buy them back later at a lower price for profit. This is not something new or illegal but many traders don’t understand this concept and think that it is too risky and some said it is unethical to do.