Due to developments in Borsa Istanbul markets, the Capital Markets Board (SPK) has decided to ban short selling in the market. When an investor anticipates that the price of a particular stock will decrease, they aim to profit from this decline by engaging in short selling. The ban on short selling will be valid until the end of the session on March 25th. So, what is short selling in the stock market? Short selling refers to selling capital market instruments that are not owned or giving an order for their sale. The fulfillment of the settlement obligation regarding the sale with borrowed capital market instruments is also considered as short selling. In order to engage in short selling, the order must be initially entered as a short selling order. The executed short selling transactions are announced in the Daily Bulletin on a share basis, specifying the quantity and contract amount at each price level. The “List of Securities Subject to Margin Trading and Short Selling Transactions” excludes GRIs, REITs, and ETFs, covering all shares and ETFs traded in the BIST Equity Market markets. Therefore, shares traded on the Star Market and Main Market, as well as ETFs, may be subject to both margin buying and short selling transactions. However, margin buying and short selling transactions cannot be conducted in warrants, certificates, ownership-based lease certificates, real estate investment funds, and venture capital investment funds. While margin buying can be done in real estate certificates, short selling transactions cannot be performed. Short selling is generally done for the following purposes: Profit from a Declining Market: An investor aims to profit from a decline in the price of a specific stock by engaging in short selling if they anticipate that the price will decrease. 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 through short selling and if the price drops to 80 TL, they can buy back the same share to make a profit of 20 TL. Portfolio Protection (Hedging): If an investor holds a portfolio and expects a downturn in the market, they can engage in short selling to protect their portfolio. Providing Liquidity: Short selling increases liquidity in the markets by providing more trading volume and price balance.