Shorting stocks and the Indian markets

With the headlines from the US on how retail traders are causing a “short squeeze” in stocks like GameStop, AMC, we have been getting a lot of questions around shorting, and if a short squeeze of this scale can happen in stocks listed on Indian exchanges. It cannot, as is explained in this post by @nithin.

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Make it creators or announcement

Yeah such a good topic…

Shorting is done in Future and Options contract, why it affects price of stock in market

Having said all the above, one should also note that heavy puts and calls sold in future will definitely affect the underlying stock price. Futures were invented to buy or sell the stocks in future through contracts but how many of th are physically delivered in the market. It has become the platform for speculators and gamblers who bet on the stock. Its pathetic that Most of the times, the stock price gets heavily influenced by these speculators. When the stock holders (short or Long-term) get frustrated by these shorters (often so called speculating experts) who makes quick money, whats wrong for the investors to form a cartel to hoard the stocks and squeeze them out. Philosophically speaking its also correct. It will also give way for an unmanipulated price discovery.

Whole economy is the casino…

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Article about how to use SLB Platform for lending and shorting individual stocks by retail investors in India is quite outdated, Can you please updated process how to lend your stocks into SLB platform to earn extra money if you are a long term holder ?
Apart from outdated 2013 article there is no mention of SLB platform anywhere on zerodha website as well ask console etc.

Who created this thread is afraid of getting listed in market ? Retail revolution is on the way back door trading platform also have helped big investors in India in past by not giving BO CO orders.

Who?? Just wanna know… In F&o buying and selling happens at a fixed price ( strike price).

in Gamestop
hedge fund traded without hedge ???

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There is a mention of it in one of the support pages.

Also, there was a thread a few months ago that mentioned about the charges for SLB -

because stock market is now the derivative of the “derivative market” which itself is the “derivative” of the stock market :upside_down_face:

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seeing these stocks move so wildly… aren’t there circuit limits in place in US markets like we have in india? :thinking::thinking:

I guess they believe in free markets. Let them behave as they want to with minimum restrictions.

Naaaaah. Nope. Nada.

They had a lot of temporary trading halts for those stocks (around 40 for GME alone last week) in which trading stopped for 5 minutes per halt (Refer to this website for details about halts in specific stocks.)

A page on Investopedia explains about the rules regarding these halts briefly -

In any case, the Securities and Exchange Commission has made some regulatory changes, including imposing a so-called Limit Up Limit Down Rule. The rule, intended to thwart trading manipulation or error, establishes an upper and lower trading band for each security traded. Trading is paused for five minutes if the stock’s price moves outside that band.[1]

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thank you for this @prayag

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Sorry - new here - but what is a circuit limit?

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