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Loan and Mortgage Terms Glossary


The activity of selling something prior to owning it. In securities markets, selling short means a trader sells a futures contract or makes a forward contract for the sale of a cash commodity or instrument without owning what is sold. The trader must then buy an identical amount in order to deliver what has been sold. The trader will make a profit in a market with declining prices, since he will buy for a price less than the previous price at which he sold. See long.

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