Short Selling Explained: What it is, How it Works, and Why it Matters

Short selling sounds dodgy, doesn’t it? Like something whispered in back alleys or done just before a courtroom sketch artist gets involved. But in the world of finance, it’s not only legal – it’s often essential.

In this Insight, we’ll give short selling the once-over – what it is, how it works, and why anyone would try it in the first place. We’ll also look at how UK rules shape the game, how asset managers actually use it (without blowing up), and whether it’s a market lifeline or a high-stakes gamble.