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Short selling is used used as a hedge against downside risk of a long position Not accurate, assuming you're talking about the same stock. Shorting a stock is

Short selling is used used as a hedge against downside risk of a long position Not accurate, assuming you're talking about the same stock. Shorting a stock is precisely equivalent to selling it, and your brokerage will always net them out. Perhaps you're thinking of OTM put options?

nabla9 7y ago
>A "short sell against the box" is also known as "shorting against the box." Sellers use this technique when they do not actually want to close out their position on a stock. The strategy is generally used by investors who believe the stock is due for a fall in price, but do not wish to sell because they believe the fall is temporary and the stock will rebound quickly. https://www.investopedia.com/terms/s/sellagainstthebox.asp https://www.investopedia.com/terms/s/sellagainstthebox.asp