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How to Short Sell a Stock When Trading Falling Markets

Shorting a stock involves selling a borrowed stock in the anticipation of buying the same stock back at a lower future price and pocketing the difference. Short selling is a normal part of an active trader’s plan as it presents traders with the ability to benefit from an advancing market and a declining one. This article makes use of examples to explain what short selling is, why it is important and lists the top things to consider when short selling stocks.   WHAT IS SHORT SELLIN

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