Bruce Bentley

The margin trading contract usually includes a stock loan approval clause. By Sunil K Parameswaran As we know, bulls are traders who expect the markets to rise. As a result, they purchase securities in anticipation of a situation where they can later sell at a higher price. Technically, we say that such traders have been long in stocks. Long traders can sell the stocks whenever they want. Their philosophy is "buy cheap and sell high". Bearish speculators, on the other hand, expect the markets to decline later. They want to take advantage of it by borrowing securities and then selling them. They assume that they can then get the securities back at a lower price and return them. Technically, we say that such traders were short in securities. Traders who take short positions have an obligation to buy back and redeem the securities. This act of buying back and returning the assets is known as "covering a short position". Hence, the philosophy of such traders i...

Stocks that could potentially be removed from Korea's large-cap tracking benchmarks and MSIC index could become initial targets for shot selling once the cap hits May following a 14-month ban that started with Big -Cap issuance begins to be lifted. Selling short enables an investor to take advantage of falling stocks. The practice has been temporarily banned as part of the Covid-19 market since March last year, but is expected to resume on May 3. Stock short sales are typically made by overseas investors, so market experts believe that stocks that have strong overseas net selling or a sudden surge in borrowing could be short selling targets. According to Samsung Securities, from June 2017 to March 2020, offshore investors were 65 percent short in the Kospi market and 73 percent in the Kosdaq market. Samsung Securities selected Lotte Tour Development, Doosan Infracore, Hotel Shilla, Hanjin KAL, Samsung Heavy Industries, Toptec, Partron and BH as likely targets. Some overvalued...