what is short selling

What is Short Selling

Asalam o alikum Dears What is short selling Introduction mukhtasir farokht aik sarmaya kaari ya tijarti hikmat e amli hai jo stock ya deegar security ki qeemat mein kami par qiyaas karti hai. yeh aik jadeed hikmat e amli hai jisay sirf tajurbah car taajiron aur sarmaya karon ko hi ikhtiyar karna chahiye. tajir qiyaas araiyo ke tor par short saylng ka istemaal kar satke hain, aur sarmaya car ya port folyo manager usay isi security ya is se mutaliqa kisi taweel position ke manfi pehlu ke khatray ke khilaaf hadge ke tor par istemaal kar satke hain. qiyaas araiyo mein kaafi khatray ka imkaan hota hai aur yeh aik jadeed tijarti tareeqa hai. beijing aik ziyada aam lain deen hai jis mein rissk ayksposr ko kam karne ke liye of setting position rakhna shaamil hai. mukhtasir farokht mein, kisi stock ya dosray asasay ke hasas udhaar le kar aik position kholi jati hai jis ke baray mein sarmaya car ka khayaal hai ke qader mein kami aaye gi. phir sarmaya car un udhaar shuda hasas ko kharidaron ko farokht karta hai jo market ki qeemat ada karne ke liye tayyar hain. is se pehlay ke udhaar liye gaye hasas wapas kiye jayen, tajir shart laga raha hai ke qeemat kam hoti rahay gi aur woh kam qeemat par hasas khareed satke hain. mukhtasir farokht par nuqsaan ka khatrah nazriati tor par laa-mehdood hai kyunkay kisi bhi asasay ki qeemat laa-mehdood tak pahonch sakti hai . How to Manage the Risk short selling currence mukhtasir farokht ghair mulki currency mein ziyada khatrah hota hai kyunkay tijarat mein ziyada se ziyada nuqsaan nahi hota hai. nuqsanaat laa-mehdood hain, kyunkay forex ki qadren nazriati tor par laa-mehdood tak barh sakti hain. aik taweel ( khareed ) tijarat par, currency ki qader kabhi bhi sifar se neechay nahi aa sakti jo ziyada se ziyada nuqsaan ki satah faraham karti hai. accounts par khatray ka intizam karna aik khasiyat thi jisay hum ne kamyaab taajiron ke sath daryaft kya. khush qismati se, is mukhtasir farokht ke khatray ko kam karne ke tareeqay hain : stap nuqsanaat ko laago karen. dakhlay / kharji raastoon ke liye muawnat aur muzahmat ki kaleedi sthon ki nigrani karen. mumkina kami ke khatray ke liye taaza tareen iqtisadi khabron aur waqeat ke sath up two date rahen. jab aap –apne plate form se daur hon to bakhabar rehne ke liye tijarat par qeemat ke ko mulazmat dena aik acha tareeqa hai. qeemat ke mobile / e mil it-tila-aat hain jo taajiron ko up date karti hain jab kisi makhsoos market mein qeemat ki makhsoos sthon tak pahonch jati hai. yeh qeemat ke intabat taajiron ki kaleedi sthon ke mutabiq pehlay se tay kiye ja satke hain. short saylng forex ko davn markets ke liye tarjeeh di jati hai, taham trading se pehlay mohtaat ghhor o fikar ki zaroorat hai kyunkay yeh bearish out lick ke bawajood izafi khatrah lata hai. is ka istemaal barray idaron / taajiron ne hijz ke tor par kya hai, ya un taajiron ki taraf se jo utarti hui mandiyon mein tijarat karna chahtay hain. khatray ka intizam munasib itlaq ke liye zaroori hai, aur is mazmoon mein bayan kiye gaye tareeqon par intehai ghhor kya jana chahiye kyunkay qeemat mein manfi harkat nuqsaan da ho sakti hai. Example aik tajir ka tasawwur karen jo yaqeen rakhta hai ke xyz stock — fi al haal $ 50 par trade kar raha hai — aglay teen mahino mein qeemat mein kami aaye gi. woh 100 hasas udhaar letay hain aur inhen dosray sarmaya car ko beech dete hain. tajir ke paas ab 100 hasas" mukhtasir" hain kyunkay unhon ne koi aisi cheez baichi jo un ke paas nahi thi lekin unhon ne udhaar liya tha. mukhtasir farokht sirf hasas udhaar le kar hi mumkin hui, jo ke hamesha dastyab nahi ho sakta agar stock pehlay se hi dosray taajiron ki taraf se bohat ziyada kam ho .

Forex trading mein short selling ek ahem tareeqa hai jis se traders market ke kamzor hone par faida uthate hain. Is mein trader apni currency pair ko bech kar uske girne par paisa kamata hai. Yani agar trader samajhta hai ke kisi currency pair ki keemat girne wali hai, to wo us currency pair ko short sell kar ke uski keemat ke kam hone par faida uthata hai.Short selling ka concept yeh hai ke trader pehle se hi currency pair ko bech kar uske girne par paisa kamata hai. Jab currency pair ki keemat girne lagti hai, tab wo trader usko sasta kar ke wapas khareed leta hai. Is tarah se, usne currency pair ko sasta bech kar aur phir mahanga khareed kar faida hasil kiya.Lekin dhyan rahe, short selling risky ho sakta hai. Agar currency pair ki keemat badhti hai to trader nuksan utha sakta hai, kyun ke usko us currency pair ko mahanga kar ke khareedna parta hai. Isliye, short selling mein samajhdari aur tajwezat ki zaroorat hoti hai.Short selling forex trading mein ek important tool hai, lekin iska istemal saavdhani se aur achhi tarah se samajh kar karna chahiye taake nuksan se bacha ja sake. Ismein safalta haasil karne ke liye market ke trend aur movement ko theek se samajhna zaroori hai.

Short selling, jo ki "shorting" ya "going short" ke roop mein bhi jaana jaata hai, ek trading strategy hai jisme traders financial instruments (jaise ki stocks, currencies, commodities) ko sell karte hain jo unke paas actually nahi hote hain. Is strategy ka mukhya uddeshya price decline (girawat) par profit kamana hota hai.Yeh process kuch is tarah kaam karta hai: Borrowing: Trader ek financial instrument (jaise stock) ko broker ya lender se borrow karta hai. Yani ki temporarily, woh instrument uske control mein hota hai, lekin actual ownership nahi hoti. Selling: Borrowed instrument ko trader immediately market price par sell kar deta hai. Is se woh cash generate karta hai. Waiting for Price to Fall: Trader ab wait karta hai ki us borrowed instrument ki price gir jaye. Agar price girta hai, toh trader us instrument ko lower price par kharidkar lender ko wapas kar deta hai. Profit: Agar trader ne instrument ko lower price par kharida aur woh instrument ko higher price par sell kiya tha, toh uska profit hota hai. Kyunki woh instrument ka price usne sell kiya hua tha.Short selling mainly bearish (downward) market trends mein effective hota hai, kyunki is strategy se trader price decline par profit kama sakta hai. Yeh strategy stock market, commodities market, aur forex market mein bhi istemal hoti hai.Short selling ka istemal karte waqt, traders ko risk management ka khayal rakhna zaroori hota hai, kyunki potential losses bhi substantial ho sakte hain. Agar instrument ki price instead of falling, rise karti hai, toh trader ko higher price par instrument ko buy karna pad sakta hai, jisse woh loss mein ja sakta hai. Isliye, stop-loss orders aur risk management techniques ka istemal karke traders apne risk ko control karte hain.

### Short Selling: Kya Hai Aur Kaise Kaam Karta Hai?
Short selling ek trading strategy hai jo investors ko market ke girne par faida uthane ki ijazat deti hai. Yeh strategy un traders ke liye khaas tor par mufeed hoti hai jo bearish market conditions ka faida uthana chahte hain. Is post mein, hum short selling ki pehchan, kaise kaam karti hai, aur iske faide aur nuqsanat par baat karenge.

### Short Selling Ka Concept

Short selling ka maqsad yeh hota hai ke traders kisi asset ko udhaar lete hain, phir usse bechte hain jab price unchi hoti hai. Iske baad, jab price ghat jati hai, to traders us asset ko wapas kharidte hain aur profit kamaate hain. Yeh process kuch is tarah hota hai:

1. **Asset Ko Udhaar Lena**: Trader kisi broker se asset (jese stocks ya currencies) ko udhaar leta hai. Broker ke paas yeh asset kisi aur investor ka hota hai.

2. **Bechna**: Trader is asset ko current market price par bechta hai, jis se unhein cash milta hai. Yeh transaction bullish price level par hota hai.

3. **Wapas Kharidna**: Jab price ghat jaati hai, to trader asset ko lower price par kharidta hai. Yeh transaction short selling ka asal maqsad hota hai, jahan profit ki ahmiyat price ke beech ka farq hota hai.

4. **Asset Ko Wapas Karna**: Aakhir mein, trader asset ko broker ko wapas karta hai, aur unke paas jo profit bacha hota hai, wo unka hota hai.

### Short Selling Ke Faide

1. **Market Ghirne Par Faida**: Short selling traders ko market ke girne par bhi profit kamaane ka mauka deti hai, jabke traditional investing sirf market ke barhne par hi faida deti hai.

2. **Risk Management**: Yeh strategy risk management ke liye bhi istemal hoti hai. Investors apni long positions ko hedge kar sakte hain, agar unhein lagta hai ke market gir sakta hai.

3. **Market Analysis**: Short selling traders ko market ki fundamental aur technical analysis mein maharat hasil karne ka mauka deti hai. Yeh strategy market ki samajh ko behtar banati hai.

### Short Selling Ke Nuqsanat

1. **Unlimited Losses**: Short selling ka sabse bada nuqsan yeh hai ke losses unlimited hote hain. Agar asset ki price barh jaati hai, to trader ko woh asset wapas kharidne mein zyada paisa dena pad sakta hai.

2. **Margin Calls**: Brokers short sellers se margin requirements ka palan karne ki umeed rakhte hain. Agar price unke khilaf jaati hai, to unhein margin calls ka saamna karna pad sakta hai.

3. **Market Sentiment**: Market ke sentiment aur news events ki wajah se price movements unpredictable ho sakti hain, jo short sellers ke liye mushkilat paida kar sakti hain.

### Aakhir Mein

Short selling ek effective strategy hai jo bearish market conditions mein faida uthane ki ijazat deti hai. Lekin is strategy ka istemal karte waqt risk management ka khayal rakhna bohot zaroori hai. Short selling ke faide aur nuqsanat ko samajhkar, traders apne investment strategies ko behtar bana sakte hain aur market ke har halat ka faida utha sakte hain.

**Short Selling**
1. **Taaruf (Introduction)**
- Short selling ek trading strategy hai jisme trader kisi security ko bechta hai jab uske paas wo security nahi hoti.
- Iska maqsad yeh hota hai ke trader yeh umeed karta hai ke asset ka price girayega, taake wo baad mein usay sasta kharid kar profit kama sake.

2. **Short Selling ka Amal (Process)**
- **Borrowing:**
- Trader pehle broker se asset ko borrow karta hai.
- Iske baad, wo asset ko market mein higher price par sell kar deta hai.
- **Re-buying (Covering):**
- Jab asset ka price ghat jata hai, trader wo asset lower price par khareedta hai.
- **Returning the Asset:**
- Wapas kharid kar trader asset ko broker ko return kar deta hai.
- Is process se jo price difference hota hai, wahi trader ka profit hota hai.

3. **Short Selling ka Asaas (Principle)**
- **Price Decline ka Fayda:**
- Short selling ka basic principle yeh hai ke trader un assets ko bechta hai jinke prices girne ki umeed hoti hai.
- **Profit Calculation:**
- Profit ko is tarah se calculate kiya jata hai: Selling price aur re-buying price ke darmiyan ka farq.

4. **Short Selling ka Istemaal (Usage)**
- **Bear Markets:**
- Jab market downtrend mein hota hai aur traders ko lagta hai ke kisi asset ka price gir raha hai, toh wo short selling karte hain.
- **Market Corrections:**
- Market correction ke dauran bhi traders short selling ke zariye profit kama sakte hain.

5. **Risks in Short Selling**
- **Unlimited Loss Potential:**
- Short selling mein loss theoretically unlimited hota hai. Agar asset ka price barhta hai, toh trader ko asset ko higher price par kharidna padta hai.
- **Short Squeeze:**
- Agar market unexpectedly prices ko barhata hai, toh short sellers ko apni positions cover karne ke liye jaldi se kharidna padta hai, jo prices ko aur barha sakta hai.

6. **Zaroori Conditions for Short Selling**
- **Margin Account:**
- Short selling ke liye trader ko margin account ki zaroorat hoti hai, kyunke wo assets ko borrow karte hain.
- **Margin Maintenance:**
- Trader ko apne margin account mein sufficient balance rakhna hota hai taake broker ko yeh surety mile ke trader losses ko cover kar sakta hai.

7. **Advantages of Short Selling**
- **Bear Market Profits:**
- Short selling traders ko bear markets mein bhi profit kamaane ka mauqa deta hai.
- **Hedging Against Losses:**
- Yeh strategy kisi existing long position ke against hedge banane ke liye bhi istemal hoti hai.

8. **Disadvantages of Short Selling**
- **High Risk:**
- Price agar unexpectedly barh jaye, toh short sellers ko substantial losses uthani pad sakti hain.
- **Market Timing:**
- Sahi timing ka hona bohot zaroori hai; galat timing se losses ho sakte hain.

9. **Conclusion**
- Short selling ek risky lekin potentially profitable trading strategy hai jo asset prices ke girne par profit kamaane ke liye use hoti hai.
- Yeh bear market ya market corrections ke waqt kaafi faidemand ho sakti hai, lekin iske saath associated risks ko samajhna bohot zaroori hai.