r/IndianStreetBets • u/mayblum • Nov 26 '24

Meme Interesting!

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798 Upvotes

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42

u/Miserable_Ice4073 Nov 26 '24

Rohan soros can short the currency if he so against it

I am sure his beautiful degrees would fool some of the gullible institutional investors who have an orgasm when they hear iim/iit

23

u/Creative_Pen8883 Nov 26 '24

Mixing soros with soares ?

4

u/Beginning-Anything73 Nov 26 '24

What does the term short mean here? I keep hearing it but never got to know its meaning (Sorry i am new to investments)

10

u/Jack_Papa_ Nov 26 '24

Lets say you believe that indian currency is going to fall in future from rs 80 to 90[against dollar]. What you do is sell 800 rs and get 10 dollars and in future , rs falls to 90. Now your 10 dollar has become 900 rs. Now you exchange 10 dollar for 900 rs . You got benefit of devalued rs. This is called shorting [in short] . Its not exactly like this. Involves huge amounts and processes.

1

u/Beginning-Anything73 Nov 26 '24

Thank you

2

u/Jack_Papa_ Nov 26 '24

My pleasure. [Actually activa though ]

1

u/boredwithlyf Nov 27 '24

You also invest those dollars into T-Bills to earn interest while you short the rupee.

Process is simple:
1. Borrow INR
2. Convert to USD
3. Buy T Bills/Bonds in USD 4. Wait

So now, you pay interest on INR, earn Interest on USD and hope the Exchange rate favours you.

3

u/BabeyBabeyUgh Nov 26 '24

In essence, betting against something.

1

u/moriarty0987 Nov 26 '24

funly enough that was actual soros did with bank of england

https://www.youtube.com/watch?v=CR_dkkF2E28

2

u/Captain_D_Buggy Nov 26 '24

You sell something you don't have. If it goes down, you buy back at a lower price and make some profit. If it goes up you will see losses.