Do you buy or sell on bearish?

The trader then holds onto the proceeds from the sale, anticipating that the asset's value will decrease over time.

Once the asset's price has fallen to a level deemed favorable by the trader, they proceed to repurchase the same amount of the asset at the lower price.

Short-selling is a popular strategy among traders who anticipate a bearish market. By adopting this approach, traders aim to capitalize on the decline in asset prices.

By doing so, the trader effectively returns the borrowed asset to the lender, while retaining the difference between the initial sale price and the repurchase price as profit.

The essence of short-selling lies in borrowing an asset from a broker or another party and promptly selling it in the open market at the prevailing price.