Short Selling is the sale of shares traded whose liquidation is carried out with shares obtained on loan.
The actions Loan product targets customers who are willing to make loans of their shares in exchange for a prize or rate. For its part, the Short Sale product is aimed at customers looking for betting on a fall of a certain action, so to make a profit if the share price in question declines.
Risk: The risks associated with the loan of shares correspond to the event that the short seller does not restore the actions within the agreed time, an issue that is mitigated with the granting of guarantees. The Short Seller meanwhile, is exposed to the risk of price change of the short stock sold, which is increased by the possibility to leverage on the amount stated in guarantee and the instruments given in guarantee.