![The mechanisms behind naked short selling transactions](https://cyprus-mail.com/wp-content/uploads/2025/01/Depositphotos_689904056_S.jpg)
Short selling might sound like an insider’s game, but it’s essentially a bet. Investors borrow shares, sell them, and hope to buy them back at a lower price. Naked short selling takes this process a step further. Unlike typical short selling, where a trader borrows stocks, they actually intend to sell, naked short selling lets traders sell shares without borrowing them first. This tactic has stirred controversy and speculation for