The Philippine Stock Exchange (PSE) may soon allow investors to do short selling of stocks this year as part of their plan to start up hedging investment instruments.
What is Short Selling and How do investors profit from it?
Short Selling is the act of buying a stock or security that is not owned by the seller. Short selling is motivated by the belief that a stock's price will decline, enabling the investor to make profit when bought back at a lower price.
How to profit from short selling?
Watch the video below from Wall Street Survivor to understand how short selling works.
Of course, keep in mind that short selling is not an easy way to profit in the stock market.