Stock Trading and Other Things

what is meant my shortsell in shares? what are the rules and charges?

whats meant by shortsell?if we r not able to square of the shortsold shates on that trading day what may be the result? is there any penality for that and charges? when will i get the money back to my dp account which i used for shortsell?

Public Comments

1. if u dont buy on the same day than the shares go to auction.

2. Short selling means you sell scrips which you do not possess. This is undertaken by Day traders who buy & sell or Sell & buy the same day or in futures.
Short selling is done with anticipation that you will again buy the same scrip at a lower rate the same day. Thus you earn profits between sell price & buy price.
Such transactions has its risks and advantages and requires alertness at every minutie or hour of the trading time.

3. This has been answered many times before. But one thing I will say is that if you are an uncovered short position, your potential loss is unlimited. Think about it.
However if you are long your potential loss is the difference between the price you pay and zero.
That's not to say it shouldn't be done.

4. hi,
whats meant by shortsell?
selling stocks then buy them (on same day)

if we r not able to square of the shortsold shates on that trading day what may be the result?
the same will be bought on your behalf (this is called auction) on 3 rd day.(on that days' rate with premium)

is there any penality for that and charges?
no. there may losses due to auction.

when will i get the money back to my dp account which i used for shortsell?
yes

ALL THE BEST. (short selling, intra day itself is toooo risky)

http://vbulls.com/

5. With short sell , you can sell the shares though u dont have in ur DP account, once u short sell, need to buy on the same day, if not it goes to auction after 2 days, the shares will be brought at the price available at the time of auction. It depends on the mrket position, if market is going down u will be profitable, otherwise heavy losses. it is suggested to buy on the same day. it is very risky.

6. shortsell means that you sell the shares in anticipation that the prices of the shares will reduce from the current price.
generally for individuals, short selling is allowed for intraday i.e u should square off the quantity within the same day.
Most of the online brokers have automatic square off which automatically squares off ur open quantity around half an hour before the closing of that day.
Also u should note that many brokers allow to short sell only in selected scrips which have good trade volume.