Editing Short (finance) (section)

=== Synthetic shorting with derivatives ===
"Shorting" or "going short" (and sometimes also "short selling") also refer more broadly to any transaction used by an investor to profit from the decline in price of a borrowed asset or financial instrument. Derivatives contracts that can be used in this way include [[Futures contract|futures]], [[option (finance)|options]], and [[swap (finance)|swaps]].<ref name=Harris>{{cite book |url=https://books.google.com/books?id=Rd9hDRR1Yx4C&pg=PA41 |author=Larry Harris |title=Trading and Exchange: Market Microstructure for Practitioners |year=2002 |publisher=Oxford University Press |isbn=978-0195144703 |page=41}}</ref><ref name=Chance>{{cite book |url=https://books.google.com/books?id=DT0nnLDMYTgC&pg=PA6 |author1=Don M. Chance |author2=Robert Brooks |title=An Introduction to Derivatives and Risk Management |publisher=South-Western College |isbn=978-0324601206 |page=6 |date=11 August 2009}}</ref> These contracts are typically cash-settled, meaning that no buying or selling of the asset in question is actually involved in the contract, although typically one side of the contract will be a broker that will effect a back-to-back sale of the asset in question in order to hedge their position.