ylipörssikaupoista

Ylipörssikaupat, or short selling, is a trading strategy where an investor borrows an asset, typically a stock, and sells it on the open market. The investor's expectation is that the price of the asset will fall. If the price does indeed decline, the investor then buys back the same number of shares at the lower price to return them to the lender. The difference between the selling price and the buying price, minus any borrowing fees and commissions, constitutes the investor's profit.

This strategy is employed by investors who believe an asset is overvalued or anticipate negative news that could drive down its price. Short selling is considered a riskier strategy than traditional buying, as potential losses can be theoretically unlimited. If the price of the borrowed asset rises instead of falls, the short seller must still buy it back to return it to the lender, potentially incurring significant losses.

The mechanics of short selling involve a brokerage account that permits short selling. The investor places an order to sell short, and the brokerage firm borrows the shares from another client or from its own inventory. The proceeds from the sale are held by the brokerage until the short position is closed. Short selling plays a role in market efficiency by allowing prices to reflect all available information, including bearish sentiment. However, it can also be a source of volatility and has been subject to regulatory scrutiny at various times.