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How is Short selling Carried out ?

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Old 29th May 2008, 12:40 PM
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Default How is Short selling Carried out ?

Hi,

Iam just learning the nuances of trading....

Could some one tell How exactly Short sell is done ??? preferably with a simple example...Is short selling allowed in India ??...

Thanks...
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Old 30th May 2008, 12:53 PM
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Default Re: How is Short selling Carried out ?

i have limited knowledge , but short selling is when u sell without buying .. and then buy back when the price falls , like the inverse of buying cheap and selling expensive .. read here : http://en.wikipedia.org/wiki/Short_selling .. explained in much better way .. find out from ur broker in what stocks you can go short ..
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Old 30th May 2008, 12:54 PM
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Cool Re: How is Short selling Carried out ?

Quote:
Originally Posted by satish707 View Post
Hi,

Iam just learning the nuances of trading....

Could some one tell How exactly Short sell is done ??? preferably with a simple example...Is short selling allowed in India ??...

Thanks...
short selling is, selling of stocks u dont own.
Short selling is done in cash as well as in F&O market.
It is done when executor thinks scrip/index shall go down.
executor has to cover position on the same day in cash market and on or before expiry date of the contract, in F&O mkt.
yes short selling is allowed in India but not all stocks are eligible for short trading.
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