When most people buy an investment like a stock, they're hoping for the stock price to go up. If the stock price is lower when they buy the stock than it is when they sell it, they've earned a profit. This process is called "going long." Selling a stock short, or "shorting" as it's colloquially known, is the opposite. Instead of betting that the price of an investment is going to go up in the future, people who short are betting that the price of an investment is going to go down in the future. How do you do this, and how do you make money doing this? Read this tutorial to find out just how to sell short.
Method 1 of 3: Understanding the Theory