How to short sell shares?

Short selling can be a way for traders to profit from downturns in stocks and protect themselves from losses. The risk of loss theoretically is unlimited since the price of a stock can move up substantially. 

Here's how short selling works:

• A trader sells a stock on the open market at the current market price.

• The trader has to buy back the stock which he sold before the end of trading hours, otherwise, Emints system will execute the buy order for the quantity of the stock sold by the trader.

• If the traders' anticipation of a fall in price of the stock is correct, the trader would make a profit (the difference between selling price and buying price). However, if the traders’ anticipation is wrong and the stock price moves upwards, then the trader would be at a loss.