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Do i have to hold stock before i short them. Please give me some good tips on intraday trading , how to know which stock is having a good momentum and good for dya trading.
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When you short a stock you are borrowing the stock from the broker/dealer and then selling it. You now owe the broker/dealer the stock you sold. The idea is to have the stock price fall, buy it, then repay the broker/dealer with the stock you bought at a price below where you first sold.
I think it simply means that they are making LESS of it available for sale for that day. -john in iowa I think it’s an attempt at stability.
Shorting a stock you do not hold is a "naked" short, which you can do. My tip is don’t do it.
Meaning that you be earning the difference of the price when the stock falls. If the stock shoots upward, you be forced to buy the stock and pay for the difference.
when you sell the stock without physically having the same its called shorting. In cash market if you do short you need to cover before the closing of the trade while if you short in Futures you can cover by the expiry on last thursday of the month or carry forward your position. for shorting in futures you have to short in lot size and pay margin