Why short selling is not permitted ...?

mmca2006

mmca2006

Active Member
#1
#1
It might be a stupid question but i want to know the reason behind it.:confused:

Why short selling ( not intraday) is not permitted for small traders specially who deals in cash market ?
In future market lot size is huge and atleast 1.5-2 lac capital is required to trade only 3-4 shares.
Why small traders are deprived of the taking the advantage of bear market?
For e.g this week short selling of SBI gives huge profit but lot size is 125, if it was a lot size of 25 , probably more trader can take the advantage of short selling .Is there any possibility in future regarding reduction of lot size (just like mininifty :):))?
 
Last edited:
TraderRavi

TraderRavi

low risk profile
#2
#2
mmca2006 said:
It might be an idiot question but i want to know the reason behind it.:confused:

Why short selling ( not intraday) is not permitted for small traders specially who deals in cash market ?
In future market lot size is huge and atleast 1.5-2 lac capital is required to trade only 3-4 shares.
Why small traders are deprived of the taking the advantage of bear market?
For e.g this week short selling of SBI gives huge profit but lot size is 125, if it was a lot size of 25 , probably more trader can take the advantage of short selling .Is there any possibility in future regarding reduction of lot size (just like mininifty :):))?
Click to expand...
I will look into this and forward to nse.....:console:
 
T

trader.trends

Well-Known Member
#4
#4
mmca2006 said:
It might be a stupid question but i want to know the reason behind it.:confused:

Why short selling ( not intraday) is not permitted for small traders specially who deals in cash market ?
In future market lot size is huge and atleast 1.5-2 lac capital is required to trade only 3-4 shares.
Why small traders are deprived of the taking the advantage of bear market?
For e.g this week short selling of SBI gives huge profit but lot size is 125, if it was a lot size of 25 , probably more trader can take the advantage of short selling .Is there any possibility in future regarding reduction of lot size (just like mininifty :):))?
Click to expand...
If you have a bearish view on any stock in FNO, you can buy puts on it and benefit. SBI is in FNO. Here your maximum loss is also pre-defined. The lot size in Futures (125) is the same in options too. Also you can short in Delivery in Indiabulls if you have sufficient margin but you should square it before delivery date. Check with your broker about selling "Shares not in DP"
 
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