How To Short Sell Stocks?

#1
Hi,

I want to know whether it is possible to short sell stocks?

I know that an retail investor can short sell stocks on intra day basis.

Is it possible to be short in a stock for a few days?

Whenever there is recovery in the market after a few days fall, the analyst on TV and other media say that the rise is due to short covering.

What do they mean when they say that short covering is happening?

Is the short covering happening in the equity market or in the F&O market?

I hear that some operators are now short in some higly traded scrips of both the Ambani brothers( Economic Times , Diwali Issue).

If they are short in these stocks, how have they took the short positions?

Have they sold the furures or have they actually shorted the scrips?
 
#2
new to the forum

i am lay investor and do not find adequate time to devote for research in market, hence i joined for my enhancement of knowledge

vaidya anil
 
#3
Friends,

I don't understand why nobody replied to this thread. I am very new to trading and I have got the same questions. Could anyone please clarify the doubts?
 

columbus

Well-Known Member
#4
Hi,

I want to know whether it is possible to short sell stocks?

I know that an retail investor can short sell stocks on intra day basis.

Is it possible to be short in a stock for a few days?

Whenever there is recovery in the market after a few days fall, the analyst on TV and other media say that the rise is due to short covering.

What do they mean when they say that short covering is happening?

Is the short covering happening in the equity market or in the F&O market?

I hear that some operators are now short in some higly traded scrips of both the Ambani brothers( Economic Times , Diwali Issue).

If they are short in these stocks, how have they took the short positions?

Have they sold the furures or have they actually shorted the scrips?
Short Sell means SELL FIRST THEN BUY LATER.(At a lower level ,which is opposite
to normal trading of BUY FIRST AT LOW ,then SELL AT HIGH.)

Since a feature by all brokers by name AUTO SQUARE-OFF in the day in case of
EQUITIES is employed ,all open positions are closed in a day.

However in case of F&O ,orders can be kept OPEN for the whole series ( roughly
22 trading days or a month) for all NORMAL orders.

A SHORT seller who bought a stock in the morning at a high price wants to BUY
it at whatever LOWER level possible ,to keep whatever small profit ,in a way an
ARTIFICIAL DEMAND is created ,and known as SHORT COVERING.