How to short sell

#1
Hi All,

I'm pretty new to stock market and has been trying to learn about it from the posts here and others that are present on the net.

I came to know about the concept of short selling. When discussed with my collegues, I got discouraged to know that it is only allowed in day trading and not as position trading. If I hold a short position for more that 1 day,then closing the postion will be at broker's will. Is it true?

But on many sites I see many sell recommendations with holding position more than 1 day. How is this possible? :confused:

Please help me out with this. I'll be really thankful to you.

Regards,
Market_Learner
 

veluri1967

Well-Known Member
#2
Concept of Short Sell

Day Trading

1. In day trading, you can sell first and square off not later than by closing of the day.

STBT

1. There are some specific shares in which you can sell shares today and buy tomorrow. You need to confirm with your broker.


Positional Trades.

Cash Segment.

Sorry. In cash segment this facility is not available. Highly respected traders can do short sales with their personal reputation with their broker.

Futures and Options.

You can.
 

alroyraj

Well-Known Member
#3
Hi All,

I'm pretty new to stock market and has been trying to learn about it from the posts here and others that are present on the net.

I came to know about the concept of short selling. When discussed with my collegues, I got discouraged to know that it is only allowed in day trading and not as position trading. If I hold a short position for more that 1 day,then closing the postion will be at broker's will. Is it true?

But on many sites I see many sell recommendations with holding position more than 1 day. How is this possible? :confused:

Please help me out with this. I'll be really thankful to you.

Regards,
Market_Learner
Those recommendations can be implemented in the futures segment since short selling is possible till the end of the contract( a contract runs for 3 months) . But a note of caution though futures trading requires higher margins and better risk management techniques . The lot sizes being a central factr that can amplify your gains and losses as well.
 

Similar threads