Smart Finance

Term

Short selling

Selling shares you borrowed, hoping to buy them back cheaper later and return them. You win if the price falls, and the possible loss has no ceiling because a price can keep rising. Some simulators and contests do not allow it: read their rules.

In pesos: You borrow and sell 10 shares at $100 MXN ($1,000). If they drop to $80, you buy them back for $800 and keep $200; if they climb to $150, getting them back costs $1,500 and you lose $500.

Where to go deeper

3/4 6 min Read How a stock exchange actually works What happens between pressing buy and owning a share: the order book, the BMV, its hours, who regulates it, what an index is and what you would see if you walked in.

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Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.