What is a short sale?

A short sale is a part of the fiscal and real estate world. It refers to a transaction that does not involve ownership of the commodity sold and/or willful exposure to a loss. A short sale is exactly what the term implies, short and for immediate trade. It is a term that relates to temporary buying and selling of commodities. The limited span of time during the entire transaction is reflected in the word 'short'. This kind of transaction is part of fiscal and real estate investment. In the former it refers to short term futures trading, in real estate it relates to the immediate selling off of property to repay a loan amount. Most of the time, as short sale is transacted within the understanding that the trade would have to be reversed soon, even if the commodity is priced lower and incurs a loss.