Stock Borrowing & Lending allows you to boost your opportunities by “short selling” for a longer duration and potentially benefit even if the stock market is going through a downward trend. Shorting is a classic strategy to potentially benefit when the momentum of stocks or overall trend of the market is declining. Short positions are taken not only on simple speculative bets but can also be used to execute trading strategies such as rights arbitrage, pairs trading and index arbitrage. Essentially, short positions are covered by SBL through the use of the borrowed securities to settle an outright sale.