Short selling stocks is a strategy to use when you expect a security’s price will decline. The traditional way to profit from stock trading is to “buy low and sell high”, but you do it in reverse order when you wish to sell short. You could also sell the put option contract in the market, as it will be trading at a higher price than what you paid to purchase it. And if the stock rises? If the stock rises, or doesn't drop, you could lose the entire value of the put option. But unlike short-selling, that’s all you can lose. In this case, your risk is capped. Short-selling a stock is a risky move, but one that some investors like to try in certain markets. TheStreet takes you through what short-selling means.