Short selling means selling a share which one does not have. A person does this with the intention of buying back that share at a lower rate later. This can be done as follows: X sells 100 shares of ABC company at 10:45 am in at Rs. 100 in the market without holding such shares. Now at 11:15 when the shares fall to Rs.90 X purchases 100 shares. Now at the end of the day the order book would show that during the day x purchased and sold 100 shares with a difference of Rs.10 and X would be paid that amount. What must be kept in mind is that in the Indian markets one must square off such positions within the day itself, as it is not permitted to carry forward such trades to the next day.
