New Delhi, March 28 -- Short selling is a trading strategy where an investor borrows some stocks from a broker, betting that the price of the stock is going to decline in future, sells them at the current market value and buys them again at a lower price to make a profit. So, short sellers borrow shares from a broker, sell them, wait for a price drop, buy the same number of shares back when the price drops, return the shares to the broker and earn the profit. Let's look at it one by one.

1. A trader borrows some shares of a stock from a broker/brokerage.

2. The trader sells the borrowed shares at the prevailing market price after buying.

3. The trader waits for the price of the stock to drop keeping an eye on the market trends.

4. The...