how do investors make money in a short sale 
to make money in a short sale the investor must repurchase the shares they borrowed at a lower price than the initial purchase the difference is the investor s profit on the transaction minus commissions or fees if any the bottom linein a short sale an investor borrows stocks to sell at one price with the intention of repurchasing them at a lower price and pocketing the difference short selling is a risky strategy as losses are magnified while gains are limited short selling should only be done by experienced investors who understand the risks of this trading strategy 