Reverse trading

Respected members,
I am just a beginnner and just hit with a small(silly) doubt...

While trading online(with indiainfoline), instead of buying a specific scrip, i sold the scrip without buying and the trade got executed..I got confused and called up my relationship manager n enquired abt it..he told me that its not an issue and u can buy back anytime(better if the sold scrip's rate is higher than the purchased one) before the day trade closes(3.30pm) and infact i did so and fortunately gained a gud amount in it..

Now my question is, whether its legal to do these types of reverse trading(selling a share without buying and then buying it when the rate goes down) and can b done as regular practise??

Clarification appreciated at the earliest..

Yes.This method allowed.

Its is called "short selling". If you are doing in cash segment, you will have to buy back (called as "cover") within the same day.

If you are short selling in the futures(derivatives) segment, you can cover at a later date.

Thank u friends. Now its clear...I think ..one day i will bcome a gud trader with the help of this forum..