What is short selling? And what are the risks?

Chris Kinder, manager of Threadneedle UK Extended Alpha, works us through what it means to “short a stock”, along with the risks and an example of when he “shorted” Metro Bank in the portfolio.

To listen to more from Chris Kinder, visit our Investing on the go podcast, episode 50 “The danger of complacency and disturbing the status quo” for a full interview.

The views of the author and any people interviewed are their own and do not constitute financial advice. However the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Before you make any investment decision make sure you’re comfortable and fully understand the risks. If you invest in fund or trust make sure you know what specific risks they’re exposed to. Past performance is not a reliable guide to future returns. Remember all investments can fall in value as well as rise, so you could make a loss.