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Short Selling at NSE
georgegop
#1 Posted : Tuesday, January 16, 2018 12:41:21 PM
Rank: Member


Joined: 8/30/2010
Posts: 183
Location: Migingo
Short Selling at NSE
Don't Work for Money, Let Money Work for You..
Swenani
#2 Posted : Tuesday, January 16, 2018 2:57:26 PM
Rank: User


Joined: 8/15/2013
Posts: 13,237
Location: Vacuum
georgegop wrote:


How will one make a profit?

If I borrow when shares are trading at 2bob and sell them when they are trading at 3.what will be my profit If I end up buying the same shares at 3 in order to repay back the shares or can I repay back the shares in cash at a price when the borrowing took place?
If Obiero did it, Who Am I?
mlennyma
#3 Posted : Tuesday, January 16, 2018 3:01:27 PM
Rank: Elder


Joined: 7/21/2010
Posts: 6,183
Location: nairobi
Swenani wrote:
georgegop wrote:


How will one make a profit?

If I borrow when shares are trading at 2bob and sell them when they are trading at 3.what will be my profit If I end up buying the same shares at 3 in order to repay back the shares or can I repay back the shares in cash at a price when the borrowing took place?


I don't like it,i hate uncertain debts
"Don't let the fear of losing be greater than the excitement of winning."
Spikes
#4 Posted : Tuesday, January 16, 2018 3:11:54 PM
Rank: Elder


Joined: 9/20/2015
Posts: 2,811
Location: Mombasa
Swenani wrote:
georgegop wrote:


How will one make a profit?

If I borrow when shares are trading at 2bob and sell them when they are trading at 3.what will be my profit If I end up buying the same shares at 3 in order to repay back the shares or can I repay back the shares in cash at a price when the borrowing took place?


You wait till the price hits 2bob or below according to your bet you rebuy and obtain shares equals to or more than previously borrowed. You can see there's a profit captured in that scenario. And for the converse losses are registered.
John 5:17 But Jesus replied, “My Father is always working, and so am I.”
Swenani
#5 Posted : Tuesday, January 16, 2018 3:34:54 PM
Rank: User


Joined: 8/15/2013
Posts: 13,237
Location: Vacuum
Spikes wrote:
Swenani wrote:
georgegop wrote:


How will one make a profit?

If I borrow when shares are trading at 2bob and sell them when they are trading at 3.what will be my profit If I end up buying the same shares at 3 in order to repay back the shares or can I repay back the shares in cash at a price when the borrowing took place?


You wait till the price hits 2bob or below according to your bet you rebuy and obtain shares equals to or more than previously borrowed. You can see there's a profit captured in that scenario. And for the converse losses are registered.


Is there a max repayment period?
If Obiero did it, Who Am I?
MugundaMan
#6 Posted : Tuesday, January 16, 2018 5:48:03 PM
Rank: Elder


Joined: 1/8/2018
Posts: 2,211
Location: DC (Dustbowl County)
Disaster for Kenya. Didn't the world learn from the derivatives-driven financial crisis of 2007/08 whose effects are yet to play out in full a decade on?
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