The short sale is a highly speculative way of operating on the market. In this mode, the trader does not own the security with which he wants to operate, but borrows it from a broker.
An attempt is therefore made to play on the fall in the price of the asset and to try to earn with a moment of bearish market.
The title that you will have, however, of the interest that will have to be repaid, whether the action goes as hoped or not.
Since 2008 this method of investment has been restricted to a few markets, since it caused large falls in the price. To date it is therefore not possible to operate through short sales on all financial markets.
To learn more, read our guide Short selling: what it is and how it works.
