Short Selling in share trading, can i short sell and buy the SAME share twice or thrice in ONE day or Intraday

Question

Short Selling in share trading,

can i short sell and buy the SAME share twice or thrice in ONE day or in Intraday ?

for example

Transaction Quantity Amount

Shortsell 100 * $50 = $5000 at time 10:00 AM

buy 100 * $45 = $4500 at time 11:30 AM

Shortsell 50 * $50 = $2500 at time 1:00 PM

buy 50 * $40 = $2000 at time 3:30 PM

and now i want to short sell again the same ebay shares twice or thrice in one day or in intraday.

is it allowed to trading like this ??

Answer 1

There are no limitations on ur short sellings.............u can do as much as u like.....

even, u can do short selling at every stage or every rate as much as u can.....but, make sure all short selling qty are bought and are square offed by the end of the trading hours..........

Otherwise, u have 2 face penalties by the exchange...........

I hope u got ur ans....which is unlimited.

Answer 2

I bet you can! Not that i've tried it but one can practicly do a billion deals per day as long as you have the money!

Onother problem might be that as far as i know only big firms and corporations are allowed to short-sell. If you are a priavate Investor sitting at home you wouldn't succeed :)

Try FX markets if you wanna short positions!

Answer 3

In the United States, you can do this, BUT you must meet all the requirements for short selling and day trading.

The brokerage firm must approve your short sales. So you will have to use a larger firm that either has substantial margin customers are it's stock loan department.

You must have sufficient funds in your account to make such trades.

If you do such trading as you described you would be considered a pattern trader which requires you to have establish a margin account which will require you to maintain equity (not a balance but EQUITY) of $25,000 in your account at all times.

Answer 4

Yes you can trade like that. However, the tax ramifications may be huge as any losses you would take would be disallowed.

http://www.fairmark.com/capgain/wash/ind...

Answer 5

Yes you can do that.  You can buy/sell or short and cover as many times as you wish.  Short selling is not restricted to big firms.  

Make sure that when you close the short position you "cover" rather than "buy."   If you just buy you open a new position and be long and short.

Also, if you have a loss it is not disallowed.   If you have a loss and then trade the same stock within 31 days, the loss is deferred.  The loss is used to adjust your basis on the subsequent transaction.

Also, be aware that trading that way will quickly get you labeled as a pattern day trader. (4 or more day trades in any 5 consecutive business days earns you that labeled.)  At which point you must have a margin account and maintain a minimum balance of $25,000.00.

The above is for trading in the US.