Selling an asset that is not owned, with the expectation that the price will fall, allowing for its repurchase at a lower price.
Shorting, or short selling, is a trading strategy where an investor borrows an asset and sells it on the open market, anticipating that its price will decline. The seller aims to buy back the same asset at a lower price later to return to the lender, thereby profiting from the price difference. This strategy is often employed when a trader expects a price decrease in a particular asset.