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Friday, October 24, 2014
Short equity taking position and covering equity position
short equity taking a position and covering on the stock market
it's about the short position and covering (equity segment)
Short Trades In the stock market you can find people who really need to buy stocks to gain benefits in the raising market, but most of the time market can't fallow upper trend so the correction may take place, during in that situations how people need to react in the stock market. people not only buy stocks to gain in raising market but they also take advantage in the falling market. here people sale the stocks first without buying the shares first then they will buy back their shares for covering their position, see the example if share is quoting around 330 now they will sell first, it falls below 330 then they will buy back their shares for covering their position so time is limited on short selling, so during the day they need to cover their positions.