WHAT IS SHORTSELLING?

[kalaivaniG]

Short Selling: Short selling is a trading strategy that seeks to capitalize on an anticipated decline in the price of a security. Essentially, a short seller is trying to sell high and buy low.  Short selling is the selling of a stock that the seller doesn’t own.
Usage: Many institutions just won’t do short selling, leaving unexploited short selling opportunities from which you can benefit.

[nishat Parveen]

A trader is seeing that price of the stock is going to fall from rs.50 so he borrows 100 shares and sells it..so he sells goods which he does not own..further if he sees now trading at Rs.45 he will buys shares from the open market in order to compensate his borrowed shares with a profit of Rs.500,he creates shortselling here.

 

[jeevithakomu]

Short selling is a trading strategy that seeks to capitalize on an anticipated decline in the price of a security .Essentially short selling is trying to sell high & buy low.

Eg : sell the shares immediately at market price.

[Deepika Nautiyal]

Short selling is motivated by the belief that a security’s price will decline, enabling it to be bought back at a lower price to make a profit.

[Mounika]

A short selling is risky for number of reasons first an investor is exposed to theoretically unlimited losses if under lying stock rises instead of falls

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