However Positional short selling of Equity stocks can be done through Derivatives i.e using Futures and Options.
- Futures is a contract between buyer and seller where both keep certain amount as margin with exchange. No actual delivery of shares happens just the difference of price is settled on a daily basis. If stock falls seller of the Futures contract is in profit and Buyer is in loss.
If stock rises buyer of contract is in profit and seller is in loss.
- In options there are 2 types - Call and Put option.... To take advantage of falling prices, traders can either sell Call option or Buy Put option to make money if stock is to fall down
Hope this gives you some clarity of thought
DO remember The Risk involved in Futures & Options is higher.