Last Updated on May 9, 2021 by Justin Su
Are you trying to make money online as a trader?
Then you must know about short selling in the share market. If you don’t know what is Shorting then you are really missing out big opportunity as an earn maker.
This is going to be explaining the article on what is short selling and how do short sellers make money from it.
Let’s start with the basics.
Table of Contents
What Is Short Selling In Share Market?
Short selling is the process of selling any stock at the current price and assuming that price will go down so they buy the stock back and sell them again when the price goes up.
The person who follows this process and makes a profit from it are known as short-sellers. It is also known as short finance.
In simple step – an investor purchases stock from a broker at a decided price and period, sells the stock at the current rate, waiting for the price to go down, buy back the stock when the price goes down, and at last sell them when the price goes up.
Short selling process looks very simple to follow but it involves huge risk.