Hi!
I have equity account on Kite. The enabled products are BO, CO, CNC, MIS, NRML.
Can I short equity stocks using these settings? If yes, could you please tell me the steps? Should I hit sell and then use bracket or do I need to hit buy?
Getting a little confused with so many threads and so many different products being discussed on the threads.
BO, CO, MIS are all intraday products. So if you are shorting equity stocks, use either of the product types and just hit sell.
What each of these mean, I’d suggest you to check out this video playlist. Has detailed explanation on everything you need.
Thanks Nithin. This helps. I am going to give it a shot this week and see how it goes.
A follow up if I may - if i think a script is going to go down, not in a day or two but by say a week or two - how can I go about shorting the script? Does Kite give that facility?
U can short equity on intraday only. U have to square off the position before market closes. If u think that a stock is bearish, u can short its futures in f&o segment. Go through zerodha varsity.
In India short equity positions can’t be held overnight. You will have to use futures and options for this. Suggest you to look at the module on F&O on Varsity.
Thanks much. I hope folks have patience for some of my stupid questions here. These are more towards actually executing my first futures trade.
Say I think DCB will go to 155 by month end from 165. I am okay risking 10,000 bucks as loss. What do I need to do? What steps do I need to execute on Kite?
Add DCBBANK MAR FUT in ur dashboard(March future is the liquid contract to trade)…
When u click sell, u will see the window(snap here)…
If u want to carryover ur position, click “NORMAL”… Else click “MIS” (Ur position will have to be closed today itself)…
Then click “Mkt” to enter at Current market price or “Lmt” for the price u want to enter…
Then click sell… Once order is executed u can see the same in Open positions…
Note: Once ur order is executed, u shuld only use it from the open position window…(i have done the mistake, by closing position from dashboard and ending up with two open contracts…)
For safety: Next thing u need to do is put a stop loss… since 10k is ur max limit, u can keep stop loss at 2rs…
click the exit in contract in open position. In SL place enter 2.2rs from ur entry price(167.2 if u entered at 165) and enter 2rs in the trigger price(167 rs)…
if u r carrying ur position… SL order will be cancelled if not hit today… tomor u hav to place one again…
Hope this helps…
Thanks Arun. I tried this with a bracket order. But the order was rejected and it said i didn’t have sufficient balance - 10L.
I thought Futures worked on margins - if I have the balance to cover losses, with Stop-Loss in place, then I could execute the order. Can you elaborate if I need 10L as balance to enter DCB Futures?
Also, the target in a bracket order (BO) - does it indicate the price at which the trade will be settled if I am shorting. Considering 4 parametrs in BO when I want to short a future, Qty, Price, Stop Loss, Target - so for DCB Futures
Qty 4500, Price 165, Stop Loss 167, Target 157 => does this mean the contract will be executed if price goes beyond 167 where I will incur a loss of 45002=9000 or goes below 158 where I will gain 450010=45,000. Can someone confirm?
Finally, what happens if the price settles in between say 160? Do I still make a profit?
Check bracket cover order calculator for margin requirement in zerodha. Maybe some mistake in the order u placed… Margin requirement is 14k roughly.
u have entered all details correctly.
check this link for more clarity.
at the end of the day if ur target is not achieved u will have to close it before 3:20. or zerodha will do it at 3:20 on the current market price.
Hi,
I want to know the list of stocks allowed for shorting in spot market. Is there any list of stocks mentioned in website?
Best Regards.
This list contains list of stocks which are allowed for MIS, these stocks can be Shorted for Intraday.