Build a Short Stock Strategy

What is a short stock?

BearishNearly Unlimited ProfitUnlimited Loss

Short stock means that you are short selling the stock. The profit and loss is reversed compared to owning the stock. Short selling can be used to hedge bullish positions or to speculate on a potential decline in price. To profit, you need to buy the stock back at a lower price than you sold it for.

ProfitLossStock Price
  • Short the underlying