imgae offer

Category: Uncategorized

How I do short sell a stock?

how to short sell of day trading stocks

Reading Time: ( Word Count: )

What is Short Selling of Shares?

Short Selling of Shares is a trading strategy where the trader anticipates that the price of the stock or other assets is going to decrease. So, to make a profit in the falling market, they sell the shares by borrowing them. Once and if the price falls as per their expectation, they buy the shares and return the same. The profit is the difference between the selling price and the buying price of the shares. However, the risk is unlimited as the share price can go up against the anticipation of the trader to any amount.

If you are thinking of adopting this strategy, you should know these facts first –

  • The shares sold are borrowed shares and not owned shares
  • Anyone can short sell irrespective of retail or institutional investment factor
  • It is completely based on speculation
  • Traders are obliged to return the shares they have borrowed from the market on the expiration date
  • It generally happens when bears rule the market that is in a bearish market

Can I do a sell of stock before purchase?

Yes, short sell of stock  is allowed method where any share ca be sell before purchase. Place a purchase order for the qty required to short sell of a share and which can be purchase again in intraday basis.

 

0 Brokerage demat

About The Author

Ram Singh

Hey Investors, I have more than 13 years of experienced day trader and investor in stock market. Now I would also like to my views with stock investors.I love to spread free education for newbies.

Join Our Newsletter

Related Posts

Top-10-stock-broker-of-india

Top-10-stock-broker-of-india

Hello, Like to know about top ten stock broker in India 2021 ?  We have scrutinized India,s hundred of stock brokers for thier  brokerage charges, demat account opening fees, AMC charges and obviously trading platforms provided and prepare a list of top ten stock...

read more
Top Investing Options India

Top Investing Options India

How to start investing in India Before I begin with the know-how of how to invest in the right possible manner in stock market, I would like to share a small personal experience when I entered as a new player. Being a finance student I thought I was well equipped with...

read more

Discuss

Leave a Comment

0 Comments

Submit a Comment

Your email address will not be published.

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!

Pin It on Pinterest

Share This