Make money when value of shares goes down
Procedure to make money when the share market goes down
Some people have a though in their mind that money can be only made in share market when you buy share of a Company for Eg at a rate of Rs 35/share and later you sell it for Rs 50/share then you make Rs 15/share.Let me tell you thing you one thing that you can make money when the value of share goes down also.I will explain you with an example.
Example : The market price of a share Rs 35 and you think that the rate of that share will go down in future.you can also make money when the value of it goes down.At the rate of Rs 35 you can short-sell that share.
What is short sell?
Short sell is the process which means selling some thing at higher rate and then later on buying the same thing at lower rate.Suppose you short sell the Share at Rs 35 which means you have sold the share without even buying and you will buy that share later on when that rate of the share goes down you make profit.now suppose you short sell that share at Rs 35 and later on you buy back that share at Rs 28 then you made rs 7/share in this full deal.
Some people have a though in their mind that money can be only made in share market when you buy share of a Company for Eg at a rate of Rs 35/share and later you sell it for Rs 50/share then you make Rs 15/share.Let me tell you thing you one thing that you can make money when the value of share goes down also.I will explain you with an example.
Example : The market price of a share Rs 35 and you think that the rate of that share will go down in future.you can also make money when the value of it goes down.At the rate of Rs 35 you can short-sell that share.
What is short sell?
Short sell is the process which means selling some thing at higher rate and then later on buying the same thing at lower rate.Suppose you short sell the Share at Rs 35 which means you have sold the share without even buying and you will buy that share later on when that rate of the share goes down you make profit.now suppose you short sell that share at Rs 35 and later on you buy back that share at Rs 28 then you made rs 7/share in this full deal.
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