shorting shares

columbus

Well-Known Member
#2
How do you short shares on NSE/BSE. what are the methods available?
You can short shares for a day. (Sell first buy later).
Before day ends you have to square off the transaction
or already you should possess the share in your Demat
account.
 
#4
not interested in intraday shorting. I want to know about longer trem shorting. don't FIIs short their shares. do they use put options? what is the duration of puts on BSE
 

bunny

Well-Known Member
#5
not interested in intraday shorting. I want to know about longer trem shorting. don't FIIs short their shares. do they use put options? what is the duration of puts on BSE
Prefer NSE for trading derivatives (FNO).
There is no duration for options, but there is an expiry after which the option becomes worthless.
 

SwingKing

Well-Known Member
#6
If you short shares in NSE/BSE, then by the end of the day you will have to square of the position.

Whereas if you want to short sell for longer term perspective, then you will have to Short Futures of that share in the derivative segment.

Also, you can buy put options for that share if they are trading actively.
 
#7
"If you short shares in NSE/BSE, then by the end of the day you will have to square of the position.

Whereas if you want to short sell for longer term perspective, then you will have to Short Futures of that share in the derivative segment.

Also, you can buy put options for that share if they are trading actively. "

can you provide an example for options available to me to short 1000 shares of a company say 'HUL' for 3 month, 6 month or one year duration
 

SwingKing

Well-Known Member
#8
Intraday (1 day) - Short HUL 1000 EQUITY ... But you will have to square of this position at the end of the day.

Futures (Max 3 Months) - Short HUL futures (1000) of JAN 2010 and Square of the position at expiry in JAN 2010 (that is, if u wish to hold on to the position till then)

Options (Max 3 months) - Purchase JAN 2010 Put option of desired strike price and exercise it when you are in profit. However, option does not that much volumes. Besides Index and few selective shares, Option volume is extremely low.

(6 months) - You can do this with a instrument called "LEAPS". However, in India this option for HUL or other script is not yet available. For Index it is there, but the volumes are very very low.

Hope this helps.
 
#9
can you exercise your puts /calls and futures before the expiry. I mean that if i buy a short future of three month duration, can i sell after 15 days, if i feel there is opportunity
 

SwingKing

Well-Known Member
#10
Yes You can if profitable trade exists. That should not be a problem.

Expiry does not mean that You HAVE to hold the position till then. It only means you have the choice of holding on to that date. If in between you get an opportunity, you can exit.

Happy Trading!!
 

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