Definitions for "short sale"
A trader is in a SHORT POSITION when she sells a currency pair.Longing is the...
The sale of shares of a security that the seller does not own. Such sales are made in anticipation of a decline in the price of the security to enable the seller to cover the sale with a purchase at a later date, at a lower price, and thus at a profit. Securities and Exchange Commission rules allow investors to sell short only when a stock price is moving upward. This prevents "pool operators" from driving down a stock price through heavy short-selling, then buying the shares for a large profit.
To sell a stock you do not currently own. To go short you "borrow" stock from the Broker/Dealer, then sell the stock, with the intent to buy the stock back at a lower price than you had initially had sold it for. A short sale can only take place on an 'up tick' or 'zero-plus tick' (See Ticks).
a proactive measure undertaken by an at-risk lender
a margin transaction subject to initial margin and margin maintenance requirements