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Sell to Open

Selling to open means to establish a new
by selling shares of
or
as opposed to buying them. Selling to open makes you
the asset. In order to close a short position, the trader must buy back the shares or contracts. If the trader can buy to close the position for a lower price than they originally sold to open the position, the difference in price will result as a net profit. If the position is closed at a higher price than originally sold, it will result in a net loss.

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