i have a question. If you cannot carry a short position overnight, then how did Hindenberg short Adani stocks and then release the report later on to make huge profits? Did they short a different instrument, say option? Can someone pls clarify?
There are only buyers (BID) and no sellers (ASK) in the market. Hence if you have an open Sell MIS / CO position, and the stock hits the upper circuit at the time of square-off, the buy order will not get executed since there are no sellers in the market. In such a situation, your intraday sell order will get converted into delivery. If the stock is available in your demat account, it will get delivered to the Exchange, and you will receive the trade value on T+2. If you do not have the stock in your demat account, an auction will be conducted on T+3 to find sellers for this stock to be delivered to the buyer.
Short selling is just oppositeof normal trading (always remember that profit is when you buy low and sell high) So in the case of short selling, Instead of buying first You sell first…because you think the price will fall down in the future (basically bet against the market as they invest in a stock thinking the price will go up) And then when prices fall down you buy the stock at low price making a profit (coz you bought at low and sold at high) In normal investing we have unlimited upside and we can limit loss with a stop loss But in short selling there is unlimited downside as if the prices rise you will have to pay margin (its complex but I think the first para should explain enough)
Ma'am, I have a doubt. Sebi has said that" client can't short or long in f&o index derivative more than 500 cr national value. 1. Can the client short more than 500 cr national values F&O using two different brokers? 2. Can the client short more than 500 cr national value in both index F&O and stock F&O in the same broker?
