Shorted: meaning, definitions and examples
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shorted
[ ˈʃɔːrtɪd ]
finance terminology
Shorted refers to the practice of selling a security that the seller does not own, with the intention of buying it back later at a lower price. This trading strategy is typically used by investors who believe that the price of the security will decline. If successful, shorting allows investors to profit from a decrease in prices. However, it can be risky, as potential losses are theoretically unlimited if the price of the security rises instead.
Synonyms
bet against, sell short, short selling.
Examples of usage
- He shorted the stock before the companies announced bad news.
- Many investors have shorted the shares of the tech company.
- She was nervous after shorting because the market was volatile.
Translations
Translations of the word "shorted" in other languages:
🇵🇹 encurtado
🇮🇳 छोटा किया हुआ
🇩🇪 verkürzt
🇮🇩 pendek
🇺🇦 скорочений
🇵🇱 skrócony
🇯🇵 短縮された
🇫🇷 raccourci
🇪🇸 acortado
🇹🇷 kısaltılmış
🇰🇷 짧은
🇸🇦 مختصر
🇨🇿 zkrácený
🇸🇰 skrátený
🇨🇳 缩短的
🇸🇮 skrajšan
🇮🇸 styttur
🇰🇿 қысқартылған
🇬🇪 დაკვეტილი
🇦🇿 qısa
🇲🇽 acortado
Etymology
The term 'short' in the context of finance originated from the 17th century among traders in the London Stock Exchange. It is derived from the expression 'short of stock', reflecting the idea of being short in possession of something—specifically a stock in this case. The concept of short selling became more formalized in the 19th century as stock trading expanded and became more popular. The practice allows traders to speculate on the decline in the value of assets, effectively betting that the price will drop. While short selling provides opportunities for profit, it also carries significant risk, especially in volatile markets. In the modern trading environment, short selling is regulated and requires certain conditions to ensure transparency and fairness.