Queries About Short Selling

#1
Dear Friends
I will be happy if you answer some of my queries on Short Selling Thanking you in advance - Arun .

1. If I have about Rs.1,00,000 in my Bank Account , how much Rupees worth of shares can I short?

2. How much approximately will be the percentage of interest I will have to pay if I take 1 month to cover my short position?
 
#3
Dear Friends
I will be happy if you answer some of my queries on Short Selling Thanking you in advance - Arun .

1. If I have about Rs.1,00,000 in my Bank Account , how much Rupees worth of shares can I short?

2. How much approximately will be the percentage of interest I will have to pay if I take 1 month to cover my short position?

1. the Margin ratio depends from broker to broker, RM gives 1:5, religare gives 1:4, etc.. 1 lac will allow 5 lac margin (intraday) trades

2. Well, in Equity (cash market) you have to cover the short by the day end, some brokers will automatically cover your positions by 255-315 pm

If you are talking about Futures, then, i'm sorry, i am yet to learn about derivatives.
 
#4
Thankyou fast_rizwaan Sir for the reply !

I am talking about equity markets. Can we have a short for a week or so ? I thought it was possible ! Coz, the guide I read in Investopedia said that we can have a short for as long as we want ! But, it was related to the US Markets ! So, is it not possible in Indian markets ?

What do you think ?
 
#5
Dear arun,
plz be carefull wrt shorting in cash markets...and like rizwan said you cannot hold short positions in cash markets for more than the current trading session.You need to make sure you buy back the shares you have shorted else you will have to pay a penalty.
hope this helps

Thankyou fast_rizwaan Sir for the reply !

I am talking about equity markets. Can we have a short for a week or so ? I thought it was possible ! Coz, the guide I read in Investopedia said that we can have a short for as long as we want ! But, it was related to the US Markets ! So, is it not possible in Indian markets ?

What do you think ?
 
#7
Dear Friends
I will be happy if you answer some of my queries on Short Selling Thanking you in advance - Arun .

1. If I have about Rs.1,00,000 in my Bank Account , how much Rupees worth of shares can I short?

2. How much approximately will be the percentage of interest I will have to pay if I take 1 month to cover my short position?
Depository participants like Motilaloswal gives 1:5, smc gives 1:4, Angel broking gives 1:8. It means if u have 100000 they will give 5 to 8 lakhs of margin.

with Rs.800000.00 margin u can sell(short) or buy shares.

Example; Relcap CMP(current market price): 900, u can buy or short 888 shares, and u should be square off your position same day itself.

You have to pay the commission, stamp duty, sevice tax, STT etc...

Overall commission would be 5 to 7 paise per Rs.100.00.

Ex: If your tunover is Rs.1600000.00, then the total brokerage will be Rs. 800 to 1120
 

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