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Old 26-06-2012, 09:45 PM   #824
Sinkie
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You will need to borrow share if shorting because if you short sell share at T day and then buy back at T+1, you will not be able to deliver the share that you sold on T+3 as the share you bought will only be delivered to you on T+4.

Thus, you need to borrow share so that you can deliver on the T+3 day. Furthermore, it is very risky to short any share overnight without confirming that you can borrow the share, as the share you shorted may not be available in the lending pool. Thus, the usual pratice is to borrow the share before shorting which will incur at least 3 days of borrowing charge. This means that short-sellers using contra will still be charged the borrowing cost.
Take note, Standchart does not allow short sell nor nude short nor offer anyone securities borrowing account to short overnight

You need either a cfd or a SBL account to short (sell first buy later) overnight..

Only a trading/brokerage firms will offer you facilities like SBL, CFD accounts and ability to nude short (cover by T) and contra trading

Scb is strictly to buy then sell with no contra

Just to clarify these small bits of details

Last edited by Sinkie; 26-06-2012 at 09:48 PM..
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