If I am interested in doing short trade frequently on a Script, is it ok that I first buy some share in that script and take delivery of these in my demat account. Then can I do intra day short trade frequently as long as I keep the initially bought share in my demat account. Will there be risk of short delivery ? This way I have the freedom of going short or long any time and gain profit for each rise and fall of the price.
Since you mentioned that you intend to short/long on intraday basis only, you can use MIS option available with ZT/NOW for your trading. This way, you positions would be compulsorily squared off between 3.05 to 3.15 pm and there won’t be any risk of being “short delivery”.
You can use Cover order facility if you are using ZERODHA trader. Using this you'll place a stop loss - market order @ the time of placing an order, this will mitigate the risk of short deliver. Read the blog for further details here .
I think there is some chance of short delivery, for example the price reaches upper circuit or if there are no sellers… In these case it will result in short delivery
i guess you are right. That being the case, you could take delivery and do intraday trades long/short per your strategy.
all the best.