New to Shorting and FnO

#1
hi iam new to short selling and FnO. I have some basic questions on these topics. Can anyone answer these or if already answered else where please let me know. Thanks in advance.

1. Shorting
a. Can i not Short Sell and wait for more than 10 (n) days to cover the position ?
b. Is short Sell Only Intra day ?
c. Will it be auctioned and squared off automatically if i do not square the position in a day?
d. If it is auctioned , What will be the base price ? i mean the auction will happen based on Current market price right?
e. after how many days will it be auctioned ?
f. what is the brokerage charges for short trading?
g. how much money should i have to short 100 stocks of a share with cmp at 100. ?
h. After shorting , can we cover by setting stop loss ?
i. Is there any kind of upper circuit limit where you cannot square off/ or automatically the brokerage will auction because of limit ?
(like I sell at 100 , then it reached 200 … then does anything triggers or I can square off with huge loss on my own ?)



2. Futures -
a. For a stock with Future value of 100 and Lot of 500 how much money should i have in account to buy 4 lots.
b. what would happen if the futures value at the end of the day is 50 after having bought 4 lots at 100.
c. what would happen if the futures value at the end of the day is 150.
D. what would happen after having bought 4 lots at 100, if i have not squared off and the date meets expiry ?
e. How much money is required to short the above future of 4 lots ?

f. Can i hold the short position for more than a day untill the future expires or should i square off in the same day ?
g. i believe price movement effect on the account balance is same as explained in (b) and (c) of course the other way round.
h. what would happen if shorted future is not covered/SQUARED off and date meets expiry ?
(check how to short futures)


3.Options
a. Can we square off options at any time before strike price ?
b. Suppose i bought wipro 460CE at 4. can i sell it off even before wipro reaches 460 and exit?
 

Tamil trader

Well-Known Member
#2
you have asked so many questions here. for future trading

Please see the expiry date of the contract. until the contract date, you can keep your short position,

if you have profit, you can cover your short position anytime. no need to wait until the contract date...

if the stop loss does not trigger, you need to cover manually. so that is your risk. not broker risk..

For short selling in cash segment

you should cover within intraday. you cannot hold your short position for next trading day.

if you did not cover intraday, this will be go to auction . you should pay penalty on third day of short selling.
 

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