Selling an asset that is not owned, with the expectation that the price will decline, allowing for repurchase at a lower price.
Short selling is a trading strategy where an investor borrows an asset and sells it on the open market, anticipating that the price will fall. The seller then aims to buy back the asset at a lower price to return it to the lender, profiting from the difference. This strategy carries unlimited risk, as the asset's price could theoretically rise indefinitely.