Tuesday, September 27th, 2022

An incredibly basic guide to short selling

Graphic outlining what short selling is in 4 cartoon panels

During my long career I’ve worked on a few gigs with financial advisors and investment firms. Along the way I collected a bunch of notes, gigabytes of sketches and some odd interests that linger to this day.

Short selling was a topic that needed a light bulb moment. It took a couple of goes to explain it, then the penny dropped. Like most things in “investing” it involves a sleight of hand and an appetite for risk.

Of course, after the simplicity of the “short” comes the complexity of the “financial instrument” used to deliver it. This is where the sleight of hand that seems amusing as a single trick becomes positively terrifying.

As the pound crashed and a couple of friends asked me what was happening, I was drawn back to my sketch and notes. I took the sketch and turned it into something more substantial, although I stayed true to the original 4-panel cartoon I’d drawn.

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Graphic outlining what short selling is in 4 cartoon panels

My name is Ross Hori

I'm a freelance writer, designer and photographer. By day I create articles, features and reports. At night I take photos and write fiction. Find out more.