How do I short sell shares in equity and futures?

Generally, short selling is done when the investor expects the price of the security may fall in the coming trading hours where you do the exact opposite of what you usually do while buying the shares. First you sell the shares and then you have to buy it again.

Now the question comes that you don’t have the shares then how can you sell them first?

Because in this case, you are borrowing shares from your broker and sell them in current price. And when the shares price comes down you will buy the shares from the market and deliver it to the broker. The difference you will keep as profit. The situation will work against you, in case the share price rises. In this case you have to deliver the shares to broker whether you are end up with the loss.

How you can short sell shares-

In Equity:

1. Place an intraday order with MIS/CO order type.
2. (Because you have to settle the short sell transaction before 3:20 PM. You can’t carry the position)
3. In case you can not settle the position before 3:20 PM then Tiqs RMS team will square off the position and the charges of Rs 20 + GST for auto-square off will be applicable.
4. Short selling is permitted only in scripts on a list of scripts (DOC) prepared at the discretion of Tiqs Risk Management Team (RMS) based on liquidity, volatility, and other factors.

In case Tiqs RMS failed to square off the position (in case of lack of liquidity, stock hitting upper circuit etc.) then short delivery may occur. Click here to know more about consequences of short delivery.

In Futures:

1. Place a sell order with MIS/NRML order type.

(Short future order can be carried and you can hold it till the expiry of the contract.)