The Capital Markets Board (SPK) has imposed a ban on short selling on Borsa Istanbul AŞ markets due to recent developments. If an investor predicts a certain stock will decrease in price, they aim to profit from this decrease by engaging in short selling. The short selling ban will be valid until the end of the session on March 25th. So, what is a short selling transaction on the stock exchange? Short selling involves selling or giving an order to sell capital market instruments that are not owned. It is also considered short selling when the sales settlement obligation is fulfilled with borrowed capital market instruments. To carry out a short selling transaction, the order must be initially entered as a short sale order. The executed short selling transactions are announced in the Daily Bulletin on a share basis, specifying the amount and contract quantity at each price level. The “List of Securities Subject to Margin Trading and Short Selling Transactions” includes all shares and ETFs traded in the BİAŞ Equity Market markets, excluding GİP, PÖİP, and YİP. Therefore, shares traded on the Star Market and Main Market, as well as ETFs, may be subject to both margin trading and short selling. However, margin trading and short selling are not allowed for warrants, certificates, ownership-based lease certificates, real estate investment funds, and venture capital investment funds. Although margin trading is allowed for real estate certificates, short selling is not permitted. Short selling is generally done for the following purposes: Profiting from a Declining Market: If an investor anticipates that a certain stock price will decrease, they aim to profit from this decline by engaging in short selling. For example, if a stock is trading at 100 TL and the investor believes the price will drop, they can sell the stock at 100 TL through short selling and buy it back at 80 TL if the price drops, thereby making a profit of 20 TL. Portfolio Protection (Hedging): If an investor holds a portfolio and expects market downturns, they can protect their portfolio by engaging in short selling. Providing Liquidity: Short selling increases liquidity by enabling more trading volume and price balance in the markets.