Definition
Short selling is an investment strategy where you borrow stocks from the broker, sell them immediately, and hope to buy them back at a lower price later. The difference is your profit — minus borrowing costs and brokerage.
Example
Borrow 100 shares at 200 NOK = sell for 20,000 NOK · Price falls to 150 NOK · Buy back for 15,000 NOK · Profit: 5,000 NOK
Risk: The loss is theoretically unlimited. The price can rise to the sky while you are short — and you must buy back regardless of price.
"Betting against the world requires courage — and knowledge. Without both it is gambling."— Florence Scovel Shinn