Please explain me the Short sale in share market?

Answer 1

In strictest sense : You sell shares which you don't have. Where you are not in a position to deliver the shares so sold.

Many times depending on market trends traders do sell shares and intend to purchase them back at a lower rate. But if the trend is opposit your trade then you are forced to purchase the short sold shares at a higher rate.

Answer 2

you are "borrowing"stock and "selling" it at todays price with the idea of "buying" it back at a later date for a "cheaper" price. the difference is your profit. the problem in doing this is that you have an un-limited exposure to losses as the stock can keep going up past the price that you sold it at. ie-tech stocks are going up in price at present because of short positions.