What is Short Selling...! How to earn profit from it?

Trading simply means selling shares at a lower price with a higher price than buying profit. But the question is, what to do if there is a recession market, every stock is falling, every company's price is crashing in the stock market.

So the question is, how to earn profit from stock market even in recession?

What is Short Selling...! How to earn profit from it?
Share Market Graph

There are two ways...

The first way in which you get shares of a good company at a low price and after the market comes to its original position, you can earn a good profit by selling those stocks. But for this you have to give a little period.

The second method is more effective, which is called Short Selling. Short selling can generate profits from the stock market even in recession. You can do this only in Intraday, plus the risk factor is also high. During the recession, you can earn a lot of profits by short selling in a short time, just for this you should have a good knowledge about the stock market. The recession gives an opportunity to earn money by short selling.

If you know that the market is going to crash like the news is known, or there is a big company collapse due to which the market crashes, or because of a natural disaster, particular stocks, particular currency is going to fall here. If you have knowledge, then short selling gives you the opportunity to make a profit in that recession market. Short sale means that you sell the stock when you do not have it and buy it before the market is closed, in easy language, then without buying a stock, you sell that stock for more price and market Before closing, you earn the profit by buying that stock at a lower price. The settlement of shares in the Indian stock market is based on the cycle of T + 2. If you are short selling in Intraday, then you buy your obligation without knowing the stock exchange, so if you are selling shots in Intraday, then you do not have to deliver those unsold shares, but you will have to deliver those shares on that day. If you do not buy, then on the second day the stock exchange comes to know about your obligation and you are called a defaulter and you pay the stock exchange for this default. The penalty also charges, so do not forget to repurchase those sold shares while short selling.

Harshad Mehta and Ketan Parikh had increased the prices of the stock by fraudulently knowing the position of the stock market at that time. Mr.Radhakrushna Damani and Mr.Porinju Veliyat had made a lot of profit from short selling. Similarly, Dr. Micheal Burry recognized US SUBPRIME MORTGAGE CRISIS 2008 2 years ago and earned a lot of profit from short selling.

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