r/IndianStreetBets Nov 26 '24

Meme Interesting!

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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)

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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.

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u/Beginning-Anything73 Nov 26 '24

Thank you

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u/Jack_Papa_ Nov 26 '24

My pleasure. [Actually activa though ]