A Short Position is a trading strategy where an investor sells an asset first (without owning it) with the expectation that its price will fall, so it can be bought back later at a lower price for profit.
In a short position, traders borrow shares from a broker and sell them in the market. Later, they repurchase the shares at a lower price and return them to the lender.
This strategy is commonly used in bearish market conditions to profit from falling prices. Trading happens on exchanges like the National Stock Exchange and Bombay Stock Exchange under regulation of the Securities and Exchange Board of India.
"A trader sells a stock at ₹100 and buys it back at ₹80 → ₹20 profit per share."