Absolutely, I will explain to you about the loss in trading in Urdu.
When a trader experiences a loss in trading, the money does not disappear anywhere. Rather, that money goes to another trader or entity that made a profit in the same trade.
Think of it this way:
* Every trade has another party: When you buy something (like a share), there is someone else selling it. And when you sell, someone else is buying it. Each transaction involves two parties - a buyer and a seller.
* Loss and profit are interconnected: If you bought a share for 100 rupees and sold it for 90 rupees, you incurred a loss of 10 rupees. At the same time, there was another trader who either sold it to you for 100 rupees and later bought it back for 90 rupees to make a profit, or they bought it for 90 rupees and expect the price to rise further. The direct implication is that your loss of 10 rupees becomes part of the profit for that other party (or contributes to their total profit).
* It is a transfer of money: Trading in the stock market or any financial market is fundamentally a transfer of money. When the price goes against your expectation and you close your deal, the loss you incur goes into the account of the trader who was on the other end of that particular deal and whose expectation proved correct.
The role of the broker and exchange:
Brokers and exchanges charge a small fee on each trade, known as brokerage or charges, whether you make a profit or a loss. This fee is for their services. A very small portion of your loss may go into these fees, but the majority of your loss goes to the trader who made a profit.
In short, trading is a game where one person's loss becomes another's profit (excluding expenses). So, when you incur a loss, that money directly goes to the person or entity that was on the opposite side of you in that specific trade and whose prediction was correct.
It happened.