What is a short -term sale?

Short sale is a practice in which people occupy a "short" position on the share and hope that the value of the stock will drop and can benefit from the falling price. There are several ways to take a short position on supplies. This practice is regulated in most markets due to concerns that short sales activities could potentially expose people and the market for risks. A short retailer can wait for the price to drop and buy back shares at a lower price, giving these shares to the brokers. If a short seller negotiates badly and the price has grown, it must still cover a short sale and lose money to buy back shares to return. Many brokers do not have fixed limits when returning borrowed securities, but they will charge interest on the loan. In addition, they can call a loan and request that the buyer return the borrowed shares. When people involve this type of short sale, the creditor also receives a reduction in profits and can charge fees.

Another option is to write a futures contract for the sale of security for someone in the future at the current price. In this case, the person holding the contract is waiting for a decrease in the price of security, buying shares at a low price and then turning them and selling them according to the terms of the contract for a higher price. Like other form of short sales, this method includes the sale of securities that someone really does not have in their hands.

People can also see the term "short sales" used in the real estate market. This type of short sale is a slightly different concept. In this case, the bank agrees to accept less than the Ding Outstan component on the loan to resolve the mortgage debt. People often try to negotiate a short sale before the bank excludes the property. The debtor will still have a negative mark on his credit record, but less signs than the market closure management, and the bank, in turn