allowed or not?

[newbie_7]

hello guys,

just want to know if i can take opposite positions on the same scrip in the cash market.

eg buy Hindalco 100 shares & short Hindalco 100 shares simultaneously. The trade that gos against you would hit the stop loss or you would square off yourself.

Note - this is not allowed by SEBI in the futures market. Whether it can be done in the cash market...i dont know.

can anyone who knows for sure enlighten me on this please?

You can buy in the cash market and short the same scrip in the futures & this is what FII's do all the time. This i know.

thanx in advance

newbie_7

 

[timepass]

Use two accounts.. simble

 

[newbie_7]

timepass,

thanx for your reply...but i contacted sharekhan customer service and was told that it is allowed....now...if she understood what i meant...well..thats another story..

we all know that its not allowed in the futures market. just want to know from seniors here if there is any restriction in the cash market.

thanx again..

 

[timepass]

Oh.. sharekhan, is it?? I think they have a facility for multiple portfolios (i think upto 4) under one user name, with different DP accounts though.

 

[kumar_b_s_99]

Oh.. sharekhan, is it?? I think they have a facility for multiple portfolios (i think upto 4) under one user name, with different DP accounts though.

I cant understand your idea. When you sold, position square off. No position with you. What is the use of the trading? only brokerage loss. I think i am correct. Seniors pls reply

 

[nirbhay Dixit]

I think we can do it. It can be a hedging technique. Only point is that in future you can buy share in lot. One lot contains more than 1 share. If I am not mistaken lot size for Hindalco is 1000. So in futures minimum shares that you can buy or sell will be a multiple of 1000.

For FII their is a sebi rule wherin they can't short a stock unless they have a stock in portfolio. Check the sebi website for details.

 

[SexyTrader]

hello guys,

just want to know if i can take opposite positions on the same scrip in the cash market.

eg buy Hindalco 100 shares & short Hindalco 100 shares simultaneously. The trade that gos against you would hit the stop loss or you would square off yourself.

Note - this is not allowed by SEBI in the futures market. Whether it can be done in the cash market...i dont know.

can anyone who knows for sure enlighten me on this please?

You can buy in the cash market and short the same scrip in the futures & this is what FII's do all the time. This i know.

thanx in advance

newbie_7

Thats easy! Use two SEPERATE brokers and you can do that :thumb:

But I hope the brokerage charged is the same ? If so, no problem!

Short with one and play with the other

 

[newbie_7]

hello guys..

thanx everyone for your replies...actually i was asking out of curiousity..

in practce, i have a very simple method of trading intraday..

This is what i do...on sharekhan trade tiger..

- i have about 150 stocks fed permanently that do good daily average volumes. (above 500000)

- for the first 45 mins i do nothing...just watch the screen..

- at about 10 am i toggle the % change button to get stocks that have run up on the top...

- then i go lower down the order and look for stocks that have not yet made their move but have very high volume build up...(preferably 7-8 lac and above)

- if a stock belongs to the same sector as stocks that have already moved up considerably, i would prefer that.

- once decided, i buy the initial qualtity and wait. (always 25/75)

- then i place a stop loss about 0.5 % to o.75% below the purchase price.

- then i just wait..when it starts moving, i add the other 75% and modify my stop loss.

- after that i use trailing stop loss to protect my profits..

I have tried all indicators like stochastics, RSI, EMA but have come to the conclusion that they all tend to confuse you. If you take them too seriusly, you will never place an order...

I use nothing...just a clean template with 15 min price and volume charts.

It fetches me profits consistently and i make money on most of my trades as i can pick the stock a lot earlier just based on volume build up...

Dont go too lower down on your list or you will enter negative territory..

Todays sucessful trades using this strategy...DCB, SINTEX, ONGC.

could have also bought IBREL but volumes around 10 am were pretty thin but price and volume picked up later. Thats ok...better safe than sorry...

while picking second stocks please remember that VOLUMES ARE VERY IMPORTANT...this strategy works best on bullish days though the reverse can also be done.

i know many of you swear by technical indicators, but it has never worked for me...

remember what warren buffet said? ...keep it simple...

just thought i'd share my 2 cents with you...

comments/ suggestions/ welcome...

newbie_7

 

[newbie_7]

hello,

i dont know if you use rss feeds but if you need one here is a link from sharekhan that i use..

http://www.sharekhan.com/rssfeed/rssfeed.aspx

just add must know news link to outlook or thunderbird...live news is the same...bulk deals will help you if you trade a longer time frame or futures.

thanx