Understanding Short selling

First of all, Hi fellow traders of traderji this is my first post. Well i am not a trader yet will become one day :rofl: hopefully.

So the problem is i am totally a newbie in trading and i am playing virtual game at moneycontrol to learn and brush-up my trading skills. I am having trouble in understanding short selling. I have seen certain videos and read many post on it. I know its embarrassing but i am still not able to understand it properly.

This the picture of transaction history today.




1.) When the market opened i bought 95 shares of HDIL at the price of 107.18 and the price went upto 110.85.

2.) Then again i bought 91 shares of HDIL at the price of 110.85.

3.) Now i had total 186 shares of HDIL. I sold 95 shares at the price of 108.36 which i bought it for 107.18 with the profit of 112.

4.) After that the price started falling down and i sold those left 91 shares of HDIL at the price of 107.76 which i bought it at 110.85 with the loss of -286.

5.) Now i decided to go with Intraday trade and bought 95 shares at 107.85.

6.) when the price went up i sold the 95 shares at 113.00.

Lastly i bought 90 shares before closing of the day.

When i checked in transaction history it was written short sell. So my point is whenever we buy the stocks on downfall it is known as short selling?

2nd Ex: A stock is trading at 100 and i placed an limit order at 95. Stock falls to 95 and i bought the shares. As the shares were in downfall that will also be considered as short selling.

and also I am not able the understand later part of the short selling squaring of the stock at a certain price otherwise ii have to pay the penalty.

can someone help me out understanding the transaction of short selling?

Thank you

I would put in my take on it (Though i am 4 months into trading):

SHORT or SHORT SELL is selling the stocks (you basically borrow stock from your brokers inventory for which he may charge something , but usually for intraday its near 0) and then you Buy the stock at a lower price to get profits. (And it returns the stock return back to brokers inventory)

BUY or LONG is buying directly from market to SELL it later

So if you have a LONG position of 100 Shares and then execute a SHORT SELL of 120 shares , your 100 long shares would get covered and you will now be short 20 shares. For these 20 shares you need to Buy or LONG 20 shares from market and it will cover them up.

So i assume in the above screenshot , the order type you executed is SHORT SELL which is as good as SELL...and it covered your LONG Position.

Seniors can correct.

Also on SHORTing there are many rules by Exchange like IPOs cannot be shorted , or a stock already hammered may be restricted for SHORTing...But for practical purposed you will find nearly all stocks shortable provided your broker have them to lend you.

Short Sell = Selling the stock when you do not have the stock. You need to cover (buy back) the stock same day so that it does not goto auction.

Moneybhai picture is showing it incorrectly as Short Sell since you already have the stock.