RE:RE:London TXP shorting position update.......
Shorting is the process of borrowing shares and selling them, therefore creating artificial "excess" stock and driving the share price down.
Brokers who hold shares for people, will often then "loan" them out for a weekly/monthly charge. So shorters borrow this stock and sell it.
Yes, they have to buy it back later - their game plan generally is to short a stock and push the price down making everyone sell, then they buy back the shares and close their short. Or they may wait if a company is in financial distress, and then buy a lot of stock in a Placing at a low price, to then close the short.
Bascially, however its done, Naked or Borrowed, its about selling stock they do not own to create a false market and push the share price downwards.