Meaning and explanations of short sell and short tecniqe.

Short Sell is a very interesting and surprising topic in the share market.It has got good advantage for the day traders who expect one particular will reduce on that day. Many Traders book profit by using this technique. This technique not only having advantages but also having disadvantage. you will understand the disadvantage of short sell technique after learning what is Short sell?I hope you already know ? well, the total process I explained in that post is of general procedure of buying and selling shares. I didn't add any Short Sell related topic in that post.

when coming to the point, in general procedure you should buy shares first then wait for that scrip value to raise, then you have to sell in order to book profits. But in the short Sell Technique you can sell the shares at market price with out buying them first. Yes what you read is correct. you can sell shares even if you don't have those shares in your portfolio. and you can buy shares later but on the same day when the price of that particular scrip reduced. It is just reverse procedure to the general procedure which I explained previously.

Here in short Sell you sell shares first with out having them and buy later on the same day at low price. The difference between the selling and buying price is your profit. for better understanding with example see the below picture.