Sell Short Order is an order that takes a contrarian position in a stock. In other words, the Short Seller is selling the stock short as he has no ownership in the stock. This is ALWAYS a short-term trade not a long term. Short Sellers do not own the stock. They must borrow the stock to sell short. Therefore the lender always requires margin lending to earn interest income on the sell short shares that the lender lends to the borrower the short seller. The Short Seller has NO ownership in that stock. The Short seller is merely borrowing stock for a brief period of time. Selling Short is not common. It has become a focus for many retail groups and gurus, however, it requires specialized trading skills, techniques and plenty of education regarding downward trends and the rules of selling short. Most of the market groups are in the market for LONG TERM INVESTING aka many years of holding a stock as the company grows and becomes bigger and more prosperous thus making more investors want to be shareholders aka owners. This is NOT a common trading strategy as it requires highly skilled trader who knows the market and has successfully practiced this technique on a simulator.
AND it ONLY works for stocks that have been extremely and I mean extremely over speculated in a gambling mode. OR a stock with horribly bad news or a very bad earnings report. Something really terrible has to happen. Hedge Funds used to create “sell short funds” groups of stocks that were likely to trend down for a variety of reasons. However those types of funds are no longer popular with the Mutual Fund Industry as Inverse ETFs have replaced the outdated hedge fund. As a rule, if you commit a crime aboard a ship, that’s a crime of universal jurisdiction so you can be criminally punished anywhere, no matter where they drop you off. As a rule, you will be tried by the country where they drop you off. If it’s something minor like an assault, you will most likely just be deported. If it’s serious, like murder, you will probably be convicted there, then moved to your home country to serve out your sentence.