A short sale is the sale on an exchange of shares that are settled with borrowed shares.
The securities lending product is directed towards clients that are willing to lend their stocks in exchange for a premium or fee. The short sale product is directed towards clients looking to bet that a given stock will decline in value so that they can make a profit if the price of that stock does indeed fall.
Risk: The risks related to securities lending include the possibility that the short seller does not return the shares by the agreed-upon deadline, which is mitigated by margin requirements. The short seller is exposed to the risk of price variations of the stock sold short, which is increased by the possibility of leveraging itself over any cash and security guarantees.