Concept of Short Selling - explained

[The_Big_K]

CEans!

I'm not sure how many of you know about this, but we have a 'downloads' section in place. We'll soon be adding good articles to our downloads section, but to let you know; we have a very good article on the concept of 'Short Selling' by our own CEan-KGV.

It is available for free download here -
http://www.crazyengineers.com/index....13_sectionid=2

Don't worry, the article is written in simple language and it will make sense to you.

Do not forget to pass on the article to your friends so that they feel good about you

-The Big K-

[master01]

The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short.

[The_Big_K]

Friends, if you have any questions related to short selling, feel free to start a new thread in CE-Finance Section. We will try to have CEan - KGV to answer your queries.

-The Big K-

[The_Big_K]

Friends, if you have any questions related to short selling, feel free to start a new thread in CE-Finance Section. We will try to have CEan - KGV to answer your queries.

-The Big K-

[kidakaka]

Watch the movie Wallstreet ... sadly things like that do not happen in real life. A question for KGV here,

What happens when if a short sell is placed just before a short circuit, is it squared off in the same day itself?

[KGV]

I guess you meant lower circuit when you said short circuit. See whenever a circuit filter is applied, the transactions below/above that value are suspended. So if you have short sold a security at 110 (just at the opening price) and then it goes to 88 which will be the circuit filter value for that security assuming 20% circuit filter. In such a case no trade will be possible in that security for any value below 88. Actually the siituation will be ... No buyers and only sellers. So whatever the case you shall have to square off the deal at 88. Anyhow 20% is no mean amount.. I wish I do such a transaction some day!