What is short selling transaction?

Short selling is the process of selling an asset in financial markets with the expectation that its price will decrease, provided that you do not own that asset. The investor who carries out this transaction sells the relevant asset expecting a price drop and then aims to make a profit by buying the asset back at a lower price. Short selling can generally be applied to financial assets such as stocks, bonds or commodities.

1. **Opening a Short Position:**
- Before owning a particular asset, the investor sells it short with the expectation that the future price of the asset will decrease. In this case, the investor opens a short position.
2. **Asset Retrieval:**
- When the asset loses value or the investor wants to make a profit, the investor closes his short position by purchasing the same asset at a lower price.
3. **Profit or Loss:** - If the asset price falls, the investor earns a profit equal to the difference because he bought the asset at a lower price. However, if the asset price rises, the investor is forced to purchase the asset at a higher price and suffers a loss equal to the difference.

Short selling can be used as a strategy aimed at profiting from a market decline. However, this strategy is quite risky and involves potentially unlimited losses. Because the asset price can theoretically increase unlimitedly, in which case the investor's loss may increase.

Short selling transactions are generally subject to regulatory rules, and investors who engage in such transactions may have special permits. Additionally, short selling transactions can cause fluctuations in the markets and should therefore be used with caution.