Short sale can be described as a market transaction whereby an investor borrows securities from the brokers and sells it with the understanding that it must be later brought back and returned to the broker. The basic idea behind short sale is to make profit with the falling market prices. This concept is also used extensively in real estate business whereby the lien holders upon agreement release the lien on the real estate for a lesser amount owed by the debtor. In such cases the amount realized will not be sufficient enough to write off the debt against the property. The short sale concept can be applied to any form of property like land, apartment or shares. There are specialized agents who are proficient in handling the concept of short sale. The process can be explained as follows- initially an investor would make arrangements for buying the shares from a broker who in turn would have borrowed it from a lender. Next the investor would sell it in the open market with an intention of buy back sometime in the future. Finally the investor would repurchase the shares and give it to the broker who in turn would return it to the actual lender. Now the money making strategy lies in keeping a constant check over the market trends.
Now the concept of short sale will be clear with the following example. Assume that Mr. X buys 100 shares of  company ABC after analyzing that the stocks of the company is sure to fall. Next Mr. X decides to sell the shares as per the current market price say Rs. 25 per share. He will have a cash inflow of Rs. 2500 from this 任意売却のご相談や任意売却のご依頼は管財へ. Just a week later the stock price falls as anticipated bringing it down to Rs 20 per share. At this point of time Mr. X plans to buy back 100 shares at the current market rate of Rs. 20 per share.  He would have spent Rs 2000 in this process of repurchase. The difference of Rs.500 earned with this short sale technique is the profit earned. Now in case the price of the shares tends to rise while repurchase say Rs. 30 per share then the difference of Rs.500 will be a loss in this trade. Thus success in short selling technique is dependent on the thorough understanding of the stock market with experience being an influential factor. The concept of short selling is indeed an advanced one and definitely has certain drawbacks. Though we can be sure that if the stock price falls it will come to a lowest of zero but there is no guessing on the upper limit of the stock price in case of price rise. Thus understanding the concept of short selling in itself is bigger challenge.