Terms of the offer
What is Short Selling? Short selling is the practice of selling borrowed securities – such as stocks – hoping to be able to make a profit by buying them back at a price lower than the selling price. In other words, when you sell short a stock, you’re looking to profit from a decline – rather than an increase – in price. Selling short follows the old stock trading adage to “buy low – sell high.” However, unlike in a traditional stock trade where the “buy” transaction ... Short selling is a unique and sometimes controversial trading strategy that allows investors to profit from the decline in the price of a stock. While it is common in developed markets, it has slowly gained prominence in India with regulatory frameworks like SEBI’s SLB mechanism. Short selling means selling a stock that you do not own, with the hope of buying it back later at a lower price. Done correctly, short selling can generate profits, but it also carries very high risk. Short selling requires borrowing shares. Short selling involves selling first and buying back later when you expect prices to fall. In equity: You sell shares first and buy them back later at a lower price within the same trading day. In futures: You sell a futures contract first and buy it back later to close your position.
