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The strategy of selling a stock and then buying it back at a later time is called "short selling."

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AnswerBot

6mo ago

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Selling close in trading means selling a security that you already own, while selling open means selling a security that you do not own with the intention of buying it back later at a lower price.


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Buying short, commonly referred to as short selling, is an investment strategy where an investor borrows shares of a stock and sells them on the market with the intention of buying them back later at a lower price. The investor profits if the stock price declines, allowing them to repurchase the shares at a reduced cost and return them to the lender. However, if the stock price rises, the investor faces potentially unlimited losses, as there is no cap on how high the stock price can go. This strategy is considered high-risk and is typically used by more experienced investors.


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Is it possible for me to sell a stock before the settlement date?

Yes, it is possible to sell a stock before the settlement date through a process known as "selling short." This involves borrowing the stock from a broker and selling it with the intention of buying it back at a later date to return to the broker.