Mika
VIP Contributor
If you have been investing in the stock market, you might have come across a term short selling, what exactly is short selling?
Short selling means, investors start selling their assets once the stock price reaches a certain high point. Let’s say an investor bought the stock for the price of $10. When the price reaches $13, he will start selling all of his stocks. Since this investor has a lot of stocks, and when he starts selling, the price starts going down. The small investors lose money whereas the big investor makes money.
Short selling is a technique used by the whales to make money from the stock market, they manipulate the market by buying a lot of stocks and selling a lot of stocks at once. When they start buying, demand will be created and the price goes up and when they start selling there will be supply and the price will go down.
Short selling means, investors start selling their assets once the stock price reaches a certain high point. Let’s say an investor bought the stock for the price of $10. When the price reaches $13, he will start selling all of his stocks. Since this investor has a lot of stocks, and when he starts selling, the price starts going down. The small investors lose money whereas the big investor makes money.
Short selling is a technique used by the whales to make money from the stock market, they manipulate the market by buying a lot of stocks and selling a lot of stocks at once. When they start buying, demand will be created and the price goes up and when they start selling there will be supply and the price will go down.
