Short Selling

Short selling means selling borrowed shares, or shares you have not bought, hoping to buy them back later at a lower price and keep the difference. Losses can be large if the price rises instead.

Why It Matters

Short sellers can expose overvalued or fraudulent companies, but are often blamed when prices fall.

In India

In India, retail short selling of shares in the cash market must be settled the same day unless shares are borrowed through the lending system.