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How does a short account work?
Short selling is defined as the practice of selling an asset that an investor does not own in the anticipation of a decrease in the asset's price. The client borrows the shares from TD Direct Investing and then sells them in the market.
The investor takes on an obligation, when initiating a short sale, to return the shares they borrowed. In an ideal scenario, the price drops and the investor buys the shares back from the market at a lower price, thereby closing out their obligation to TD Direct Investing.
Please note that the answers to the questions are for information purposes only for the products discussed. Individual circumstances may vary. In case of discrepancy, the documentation prevails.