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Short selling if you are predicting the mkt is going down.
Normal case you buy then sell, short selling is the reverse engineering of the normal process; short sell at high price then buy back at low price, the difference s your profit....
Example :
Normal case :Buy low, sell high...profit
Short case : Sell high, buy low....profit
Very risking unless you got time to sit right in front of your computer during trading hour.....understand the logic and is very simple
You sell 1.0, so you have 1.0. When you buy back 1.2, this 0.2 you get from where? From your pocket! you lost.
ravikp ( Date: 15-Aug-2009 08:33) Posted:
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I lost 0.2?...pls explain
shweli ( Date: 15-Aug-2009 08:30) Posted:
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What about the risk level in CONTRA?
risktaker ( Date: 15-Aug-2009 08:26) Posted:
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You lost 0.2.
risktaker ( Date: 15-Aug-2009 08:26) Posted:
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(How the short selling profits or counted? Example i sell a share at $1.0 and later i will buy back at $1.2, so the 0.2 is my profit..is it correct?)
perhaps you might have misunderstood some terms.
PLEASE DO NOT SHORT SELL AT ALL until u understand the true meaning.
first, you MUST have share in CDP account before you can SELL share!. or you have Borrow ( i leave details out). If you do not have Shares, and do not borrow, yet you SELL, you are taking a big risk.,
next, if you do this SELL today, and you DO NOT COVER or BUY back by end of today, then you are NAKED SHORTing, and if you do so, you will be covered by CDP BUY-IN process at a very high cost to you., I copy here for you to read:
In addition to the current processing fee for buying-in of $30 per contract, there will be a penalty of 5% of the value of the failed trade subject to a minimum of $1,000. This penalty will take effect for trades executed from Thursday 25 September 2008 onwards. The fee will be reviewed from time to time to assess its effectiveness.
I just want to know about the risk level ..thats it...still i am doing it on traditional way only..
risktaker ( Date: 15-Aug-2009 08:26) Posted:
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do not try short sell unless your pro :)
ravikp ( Date: 15-Aug-2009 08:15) Posted:
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Thanks for your kind information.,,
Alligator ( Date: 15-Aug-2009 08:21) Posted:
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No need to inform IRAS on capital gain.
Also CDP and IRAS are linked, CDP will pay you amount that had already been deducted from MAXIMUM tax rate.
When you file ( especially using e-filing or electronic filing ) , IRAS record will show you those dividends as a lump sum. Every efficient. So dun need to worry on this aspect.
How the short selling profits or counted? Example i sell a share at $1.0 and later i will buy back at $1.2, so the 0.2 is my profit..is it correct?
If i have any divident income i must inform to the IRAS or SGX send full capital gain details to IRAS?
Alligator ( Date: 15-Aug-2009 07:46) Posted:
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Buy back it on the same trading day or T+3 (contra short selling)?
ronleech ( Date: 15-Aug-2009 07:52) Posted:
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Yes you can....click sell and click contra (Sell as normal) but b4 mkt close you have to buy back or your broker will performance force buy and i heard there is a fine of S$1000 impose for failure to buy back before mkt close.
ravikp ( Date: 15-Aug-2009 07:14) Posted:
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short selling = sell shares that you do not have
share gain is capital gain and hence no tax. but dividend from share is income and thus taxable
What is short selling? can i do it with contra?
Is there any income tax for share market earns? if yes how much it is?
nope...noramlly when you bid, you can only bid (Buy or sell) within a specify range ie maybe 12 jumps up or down. Anything above, you got to use force key and ya pts will be deducted for using that...
you mean the system will sell the highest price if the force key is activated..am i right?
cheongpeter ( Date: 15-Aug-2009 00:53) Posted:
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force key i used when u wana sell above 3cents(was the limit last time) if i'm not wrong.for eg,if a stock is 1 cent now and u wana sell at 10cents, then u need to use force key.for poems, u they will deduct some points fr yr acc if you use that key