The Capital Markets Board (CMB) has decided to ban short selling in Borsa Istanbul AS markets due to recent developments. If an investor anticipates that a specific stock price will drop, they aim to profit from this decline by engaging in short selling. The short selling ban will be valid until the end of the session on March 25. So, what is short selling in the stock market? Short selling refers to the sale of securities that are not owned or giving an order to sell. The fulfillment of the settlement obligation for the sale with borrowed securities also constitutes short selling. To perform a short selling transaction, the order must be initially entered as a short selling order. The completed short selling transactions are announced in the Daily Bulletin, specifying the quantity and contract size at each price level on a per share basis. The “List of Securities Subject to Margin Trading and Short Selling Transactions” includes all shares and ETFs traded in the BIAS Equity Market markets, excluding GIP, POIP, and YIP. Therefore, shares traded in the Star Market and Main Market, along with ETFs, can be subject to both margin trading and short selling transactions. However, margin trading and short selling transactions cannot be carried out in warrants, certificates, ownership-based lease certificates, real estate investment funds, and venture capital investment funds. While margin trading is allowed with real estate certificates, short selling transactions are not permitted. Short selling is typically done for the following purposes: Making Profit from a Declining Market: If an investor anticipates that a specific stock price will drop, they aim to profit from this decline by engaging in short selling. For example, if a share is trading at 100 TL and the investor believes the price will drop, they can sell the share at 100 TL, buy it back at 80 TL if the price drops, and make a profit of 20 TL. Portfolio Protection (Hedging): If an investor holds a portfolio and expects a market downturn, they can protect their portfolio by engaging in short selling. Providing Liquidity: Short selling increases liquidity by allowing for more trading volume and price balance in the markets.