Sorting is a way of making money when the price of a stock decreases. It involves selling a stock which we do not own and buying it back when the price decreases. It is more like, borrowing shares of a particular stock at a high price, and at the end of the day, return it back. The difference in the amount will be profit/loss for the trader. If the difference amount is positive, it means, trader earned profit. Whereas, if the difference amount is negative, which means, trader lost money.
When we go long (buy) a stock, the maximum we can lose is our investment, and the maximum we can gain is infinite. However, when we short a stock, the maximum we can gain is the price we sold it for.
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