Short selling loss - Colombo share market Sinhala keshan hareshu

Short selling in stock market, short selling explained and short selling shares most important technique for Colombo share market. I am trying to explained short selling in sinhala. in first video i try to teach what is the meaning of short selling in Colombo share market ..

Short selling is a trading strategy used in the share market where an investor sells a security that they do not own. In traditional investing, investors buy a security with the expectation that its price will rise, allowing them to sell it at a profit later. However, in short selling, the process is reversed.

00:00 - 00:46 Short selling intro
01:00 - 05:50 short selling loss explain
05:56 - 08 :40 Short selling example for real life
08:41 - 11:09 How to manage loss Share market

Here's how short selling works:

Borrowing the security: The investor borrows the shares of a particular stock from a broker or another investor who owns the shares. The borrowed shares are then sold in the open market.

Selling the shares: After borrowing the shares, the investor sells them immediately, with the goal of buying them back at a lower price in the future. The shares are sold to buyers who believe the stock price will decline.

Waiting for a price drop: The investor waits for the price of the stock to decrease. If the stock's price does drop, the investor can buy back the shares at a lower price.

Buying back the shares: Once the stock price has fallen, the investor repurchases the shares in the open market. The shares are returned to the lender, and the investor keeps the difference between the original selling price and the lower buying price as profit, minus any transaction costs or borrowing fees.

Returning the borrowed shares: The investor returns the borrowed shares to the lender, closing the short position. If the stock price has not dropped, and instead rises, the investor may incur a loss.

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