Source: https://mochatrade.com/learn/glossary/short-selling

# Short selling
URL: https://mochatrade.com/learn/glossary/short-selling
Last modified: 2026-10-17

Short selling is selling a borrowed share to buy it back cheaper. The loss is open-ended if the price rises, the borrow costs a fee, and when lenders run out the stock is [hard to borrow and squeezable](https://mochatrade.com/learn/us-market-structure/who-moves-us-stocks). A cash-settled contract needs no borrow; [one short, start to finish](https://mochatrade.com/learn/start-here/nvidia-trade-walkthrough), and [funding shows how crowded it is](https://mochatrade.com/support/mochatrade-trading-fees-and-funding-rates-explained).

## Related terms

- Hard to borrow: https://mochatrade.com/learn/glossary/hard-to-borrow
- Long and short position: https://mochatrade.com/learn/glossary/long-and-short-position
- Bid-ask spread: https://mochatrade.com/learn/glossary/bid-ask-spread
- Short squeeze: https://mochatrade.com/learn/glossary/short-squeeze
- Short interest: https://mochatrade.com/learn/glossary/short-interest
- Perpetual futures: https://mochatrade.com/learn/glossary/perpetual-futures

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.