Here Is Why You Should Stay Clear of Short-Selling

In investing, most people make money by owning stocks, also known as being long stocks. Investors choose this strategy when they believe a stock will go higher. But you can also bet on stocks to fall, called short-selling. In order to go short a stock, you must borrow shares from your brokerage. The idea is that, once the price falls, you buy them back and make a tidy profit.

While this idea may sound just as logical as owning stocks, in reality there are a number of added risks to short-selling that make it a strategy best avoided.

Keep reading to see 10 reasons why you should stay clear of short-selling.

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