Short Selling

#1
Originally Posted by anbelaman
I have doubled my money and even made it triple, but not always
this is no trick,you can very well do it in intraday with high leverages.
for an example if u want to go for a short sell
selling 2000 Nos of X company's stock at Rs50 each, and buying it at Rs53 on the same day
This can be done with an investment of Rs 5000 and by leveraging it 20 times that is 100000Rs Margin and when u sell it from 51 and buy them at 53, u would get Rs. 6000 as Profit , but if u r going to get a loss then the matter of risk comes
The more u take risk, the more u gain. but in times losses too. if u are sure that the signal is predictable u can leverage!!!
Elango Pugazhendhi


Can anyone explain what kind of trade is mentioned above.

If we sell X company share at RS50 each and buying it back at rs53 each on same day Then how its a profit we actually buying higher price then what we sold,so i think we are losing RS3 per share right.But in above comment its mentioned as profit.Iam confused wat kind of trade is this can some one explain.

Thank u
 

manojborle

Well-Known Member
#2
Originally Posted by anbelaman
I have doubled my money and even made it triple, but not always
this is no trick,you can very well do it in intraday with high leverages.
for an example if u want to go for a short sell
selling 2000 Nos of X company's stock at Rs50 each, and buying it at Rs53 on the same day
This can be done with an investment of Rs 5000 and by leveraging it 20 times that is 100000Rs Margin and when u sell it from 51 and buy them at 53, u would get Rs. 6000 as Profit , but if u r going to get a loss then the matter of risk comes
The more u take risk, the more u gain. but in times losses too. if u are sure that the signal is predictable u can leverage!!!
Elango Pugazhendhi


Can anyone explain what kind of trade is mentioned above.

If we sell X company share at RS50 each and buying it back at rs53 each on same day Then how its a profit we actually buying higher price then what we sold,so i think we are losing RS3 per share right.But in above comment its mentioned as profit.Iam confused wat kind of trade is this can some one explain.

Thank u
You are correct what he has written is wrong, he is taking 3rs loss
 

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