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  2. Put option - Wikipedia

    en.wikipedia.org/wiki/Put_option

    In finance, a put or put option is a derivative instrument in financial markets that gives the holder (i.e. the purchaser of the put option) the right to sell an asset (the underlying), at a specified price (the strike), by (or on) a specified date (the expiry or maturity) to the writer (i.e. seller) of the put.

  3. Short (finance) - Wikipedia

    en.wikipedia.org/wiki/Short_(finance)

    For this reason, short selling probably is most often used as a hedge strategy to manage the risks of long investments. Many short sellers place a stop order with their stockbroker after selling a stock short—an order to the brokerage to cover the position if the price of the stock should rise to a certain level. This is to limit the loss and ...

  4. Short Selling: How To Short Sell Stocks - AOL

    www.aol.com/short-selling-short-sell-stocks...

    Short selling is an investment technique that generates profits when shares of a stock go down rather than up. In most cases, shorting stocks is best left to the professionals. In fact, it's mostly...

  5. 6 Stock Option Trading Strategies to Consider in 2024 - AOL

    www.aol.com/6-stock-option-trading-strategies...

    Uncapped downside exposure if puts exercised below purchase prices. Vertical Spreads. Speculation. Pairs buying and selling of calls or puts on same expiration but different strikes. Often defined ...

  6. How to Short a Stock — and Why You Shouldn’t - AOL

    www.aol.com/finance/short-stock-why-shouldn-t...

    Short selling is an investment technique that generates profits when shares of a stock go down, rather than up. If you're a fan of the movies, you might remember the 2015 film "The Big Short ...

  7. Long/short equity - Wikipedia

    en.wikipedia.org/wiki/Long/short_equity

    A hedge fund might sell short one automobile industry stock, while buying another—for example, short $1 million of DaimlerChrysler, long $1 million of Ford.With this position, any event that causes all auto industry stocks to fall will cause a profit on the DaimlerChrysler position and a matching loss on the Ford position.

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