Thanks Sameer for you reply..
Do you mean without buying any option lot, can we sell the option ? Is this supported by all the brokers? I am using sbi-demat account.
Thanks,
That is what short sell means- selling the thing which u dont own! sounds surprising but u sell at a price and have to cover it laters ( buy back).
If u short a stock whose price is at 50Rs. then u hav to buy it back on the same day.
If u feel that a price of stock will fall , u short it.
u sell first at a higher price and laters buy it at lower price. short selling is cash settled and there is no delivery of stocks.
In case of options , short sell or selling or writing an option can be done ,
and yes u can sell/write an option which u dont own.
But u hav to cover it ( square off ) before expiry or it will be forcefully exercised at expiry since u r obligated to do so.
If in SBI trading accnt, u hav facility to trade options , u must be able to write options aswell.
But u need to place a margin HOLD for that.
