What is Short Selling in the Stock Market? / What is Short Sell?

What is Short Selling in the Stock Market? / What is Short Sell?

Short selling is a trading strategy where you sell shares without owning them, expecting the stock price to fall. The shares are then bought back later at a lower price to earn a profit from the price difference.

To short sell a stock, you place a sell order in an eligible stock during market hours and later buy back the same quantity of shares to close (square off) the position.

If you do not square off an intraday short position, it may be auto-squared off by your broker or may result in an auction process and applicable penalties as per exchange regulations.

Short selling involves significant risk because there is no upper limit to how high a stock's price can rise. If the stock price moves up instead of down, you may incur substantial losses.

You can check your short sell position in the Positions section of your trading platform, where you can view details such as quantity sold, average price.

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