What is short sale.what are its rules?

Question

What is short sale.what are its rules?

Answer 1

this term normaly used in stock mkt. this means you sale the stock which you dont have and when stock price goes down you buy it.curently you can do this only on daily basis in A group stock, you cant carry forward to next day. you can do this in f&o segment.

Answer 2

hi tanushree

this is ibrar, investment advisor from chennai.

SHORT SALE in market means you can sell the shares without having it in ur account.

The process has some rules.

1.After selling you must buy it withing the market closing time.

2.you cannot carry forword the position to next day.

3.If u dont but it you may be in danger of loosing ur invesment bcoz the process is like that in stock exchanges. i.e.. if u dont do it it will go to AUCTION MARKET and as per thier calculations you may have to pay penalty...

best strategy is dont do intraday trades.

if u think the price of a share will go down take positions in futures instead of intrady as futures will give u some flexible options like carry forwarding, high liquidity.

MAIN RULE &CAUTION:

SEBI, BSE & NSE HAS GIVEN MAXIMUM FACILITIES ONLY TO FII's & DOMESTIC INSTITUTIONAL INVESTER's. SO THEY WILL PLAY WITH HUGE MONEY. THEY CAN TAKE RISK AND MAKE PROFIT AS THEY R DEALING IT PROFFESIONALLY. AND THEY WILL THROW A TRAP IN WHICH SMALL INVESTERS (having very less knowledge and low risk taking) GET CAUGHT AND BURN THEIR HANDS WHICH LEADS TO SELF DISTRACTION & SOME TIMES TO SUICIDE. SO BE CAREFULL BEFORE TAKING DECISIONS.

i hope i have given enough details to ur query. if u still have doubts you can mail me. my id is [e-mail].

And as a investment advisor i can give u more strategic investment plans as per all ur investment needs like shares, mutual funds, insurance.

keep in touch.

thanks and regards

ibrar.k