SHORT SELLING (Syllabus: GS Paper 3 - Economy)

THEIASHUB
Get an Instant Call Back from Our Expert Mentors Now!
+91

Context: The Enforcement Directorate has concluded, after a preliminary investigation into the Hindenburg Research report and the subsequent market crash, that a dozen companies including foreign portfolio investors and foreign institutional investors (FPIs/ FIIs) based in tax havens were the “top beneficiaries” of short selling in shares of Adani Group companies.


Short selling

  • About: Short selling, or shorting, is a trading strategy based on the expectation that the price of the security will fall.
  • While fundamentally it is based on the “buy low, sell high” approach, the sequence of transactions is reversed in short selling - to sell high first and buy low later. 
  • Also, in short selling, the trader usually does not own the securities he sells, but merely borrows them.
    • Traditional method: “Buy low, sell high” is the traditional investment strategy in which one buys a stock or security at a particular price and then sells it when the price is higher, thereby booking a profit. 
      • This is referred to as a “long position”, and is based on the view that the price of the stock or security will appreciate with time.
    • Process: In the stock market, traders usually short stocks by selling shares they have borrowed from others through brokerages. 
      • When the price of the shares falls to the expected levels, the trader would purchase the shares at the lower price and return them to the owner, booking a profit in the process. 
      • If, however, the price of the shares appreciates instead of falling, the trader will be forced to buy shares at a higher price to return to the owner, thereby booking a loss.


    QEP Premium 2025 (B5)
    QEP Premium 2025 (B5)
    Buy now
    Fill out form for more details
    I agree to give my consent to receive updates through SMS/Email & WhatsApp*.

    NEEV GS + CSAT Foundation 2026/27
    NEEV GS + CSAT Foundation 2026/27
    Buy now



    Join theIAShub’s Mains Answer Writing Program

    Refine your answer writing skills and elevate your UPSC preparation with personalized support and expert feedback.

    Fill out the form to get started with the program or any other enquiries !

    I agree to give my consent to receive updates through SMS/Email & WhatsApp*.

    Best IAS Coaching In Delhi, UPSC Online & Offline Classes by IAShub

    Are you dreaming of becoming an IAS officer? Then, IAShub can be your best guide. It is one of the Best IAS Coaching in Delhi. Many students who want to clear the UPSC exam join IAShub for learning. The institute gives both online and offline classes. Their teachers are experienced and helpful. They easily explain every topic. Students also get notes, tests, and tips to do well in the exam.

    UPSC Online Classes by IAShub

    IAShub is in Delhi and is trusted by many UPSC students. It offers coaching for every part of the UPSC exam – Prelims, Mains, and Interview. The classes are simple and easy to understand. The teachers are experts and guide students in the right way. IAShub is also known for its helpful notes, test series, and answer-writing practice. IAShub is the best coaching in Delhi and also gives UPSC Online Classes. This helps students from any place in India to learn. The online classes are live and also recorded. So, students can watch them anytime. These classes cover the full UPSC syllabus.

    Key Offerings Provided by IAShub

    Here are some important services provided by IAShub:

    • UPSC Prelims: IAShub teaches for Prelims with a focus on basics. It also gives daily current affairs and monthly magazines.
    • Classroom Courses: IAShub has classroom learning for students in Delhi. The environment is good and peaceful for study.
    • Live Classes: Students who live far can join live UPSC online classes. These classes are just like real classes.
    • QEP for Mains: The Quality Enrichment Program (QEP) is special for Mains preparation. It helps students write better and faster.
    • Answer Writing: Regular answer writing practice is given. Teachers also check answers and give tips to improve.
    • Free Resource: IAShub gives free notes by toppers and helpful Main Booster material.
    • Test Series: Test series are available for every subject. These help students know their weak points and improve.
    • Interview Guidance Session: IAShub also gives interview practice sessions with experts. These help students feel confident.

    UPSC Exam Overview

    The UPSC Civil Services Exam has three parts:

    • Prelims: It has two papers: General Studies and CSAT.
    • Mains: It has nine papers, including essays and optional subjects.
    • Interview: It tests the personality and confidence of the student.

    This exam is tough, but with the right guidance, it becomes easy to manage. Students must study smart and stay regular.

    How IAShub Helps in the UPSC Journey

    IAShub supports students from the beginning to the end. It gives the right books, tests, and notes. The classes are easy to follow, and the teachers are always ready to help. Students get personal doubt sessions too. The test series and answer checking help students learn where they need to do better. Also, free study materials save time and money.
    IAShub also guides students during the final stage – the interview. Experts take mock interviews and give useful tips. This full support makes IAShub one of the best IAS coaching in Delhi.

    Best IAS Coaching In Delhi FAQs

    Yes, IAShub offers live and recorded online classes. Students can attend from any part of India.

    Classes are available in both English and Hindi, so students can choose the language they are comfortable with.

    The classroom centre is located in Delhi. Students can visit and join offline batches there.

    IAShub gives interview guidance sessions to help students prepare for the final round of UPSC.