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Short selling of stocks

Discussion in 'Technical Analysis' started by ravirajpr, Apr 9, 2014.

  1. ravirajpr

    ravirajpr Responder

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    Hi Shabbir,

    Can you let me know which brokers allow to do short selling of stocks in cash segment and within how many days do we need to cover the short position.

    I haven't done any short selling and would like know the process so that I'm aware of it when an opportunity is available.

    As per my understadning usually when we try to short sell we borrow the stocks from the broker's inventory and later when we buy we return back the borrowed stocks to the broker.

    Is there any additional charges for short selling. Let me know if there is anything that I need to be aware of short selling.

    Thanks.
     
    ravirajpr, Apr 9, 2014
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  2. shabbir

    shabbir Administrator Staff Member

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    You have to cover the position on the same day.

    If you don't cover the position on the same day then you get 20% penalty.
     
    shabbir, Apr 9, 2014
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  3. ravirajpr

    ravirajpr Responder

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    Thanks so I assume to short sell for more than 1 day F&O needs to be used.
     
    ravirajpr, Apr 9, 2014
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  4. shabbir

    shabbir Administrator Staff Member

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    Exactly
     
    shabbir, Apr 9, 2014
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