Kortsvindel

Kortsvindel, also known as short-selling or selling short, is a trading strategy used by investors to profit from a decline in the price of a security. The process involves borrowing shares of a stock from a broker, selling them at the current market price, and then buying them back at a lower price in the future. The difference between the selling and buying prices, minus any associated fees, is the profit for the investor.

This strategy is particularly popular among institutional investors and hedge funds, as it allows them to generate returns without having to purchase the underlying asset. However, it also carries significant risks, including the potential for unlimited losses if the price of the security rises. This is because the investor must return the borrowed shares at the end of the transaction, and if the price has increased, the investor may be required to pay a higher price than they initially sold the shares for.

Kortsvindel is also subject to certain regulations and restrictions, such as margin requirements and short interest limits, which can impact the feasibility and profitability of the strategy. Additionally, the practice can have a negative impact on the market, as it can contribute to increased volatility and downward pressure on stock prices.

In summary, kortsvindel is a trading strategy that allows investors to profit from a decline in the price of a security by borrowing and selling shares at a higher price and then buying them back at a lower price. While it can be a profitable strategy for certain investors, it also carries significant risks and is subject to various regulations and market impacts.