1.Do the trading platform find the suitable LTP order to execute the short order.
I have a doubt that will every short order be executed only after the buyer buying it at LTP?
I have a doubt in this since the shorting takes place at LTP
Which means if I am shorting 5000 shares at LTP should someone buy that at LTP, to execute my order.
You may or may not short at LTP, you can place your short order even above LTP. For example, if Reliance LTP is 905 then you can place your limit Sell order (to Short) at 910. If some buyer wants to buy Reliance at 910 then the trade will happen at 910 and that will become the new LTP.
To have your short order executed, there must be a buyer willing to buy at that price, otherwise trade won’t happen.
Tanmay is right.
It depends on the type of order you initiate.
Lets take your example and elaborate on it to get a better perspective.
Stock X is trading at 100 and you decide to short the stock, there are a few ways of doing that but for now I shall concentrate on the two more regular versions. You could either go short at 100 with a market order or go short at 100 with a limit order. With the market order you are guaranteed a complete fill on your order but not the price. With the limit order you are guaranteed the price but not a complete fill. Lets assume you short 5000 shares at 100 with a market order the ensuing transaction could happen this way, 2000 shares are sold at 100, another 2000 at 99.95 and finally another 1000 at 99.90. Shorting 5000 shares at 100 with a limit order is different in the sense that if 2000 shares are sold at 100 and then the price goes down to 99.95 no further shares are sold, the order remains in a pending state and further transactions will happen only if the price climbs back up to 100 otherwise if the price keeps going down you will have shorted 2000 shares at 100 in total with 3000 pending.