Despite a rally today in the market, the S&P 500 posted it’s worst month since March 2022. The Dow and Nasdaq experienced terrible months, down 3.3% and 8.9%, respectively.
Shorting, or short-selling, is a speculative trading strategy in which a trader opens up a short position by borrowing shares of a company, betting on its unprofitability, or a price decline, which allows the trader to buy them at a lower price for a profit. According to data from the financial analytics firm S3 Partners, the stock market’s slide at the start of this year led short-sellers to gain $114 billion in realized and unrealized gains as of January 21.
