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Ask the Institute

DATE: April 14, 2014

QUESTION:

Can you explain what it means to sell stock short?

ANSWER:
Selling stock short is a strategy that is more frequently referred to as "selling short" or "shorting stock." If a trader has a market outlook that the price of a specific stock will fall, then selling stock short is one commonly-used strategy that may attempt to profit from such a bearish forecast. To learn more about selling stock short, view this segment of "Ask the Institute."


CBOE Volatility Index (VIX)