Regarding Short Selling Query

[Platinumstartvf]

Hi, I called my DBS Vickers in regards to short selling. Apparently they do not encourage short selling on Singapore market.

I was told that I am given "1" trading day to buy back the stocks I borrowed.

It seems like the penalty for short sellers can get pretty heavy. What are the penalties like and cost of borrowing?

 

[tangent314]

You must cover the short by buying back the amount that you sold within the same day that you sold the stocks. If you fail to do so, you will receive a love letter from SGX, and you will have to pay a fine.

 

[revhappy]

So how do you express a bearish view on stocks in SG then? Are there single stock futures? In India there are certain stocks with futures contracts because there also no borrowing and shorting allowed.

In the US, I believe you can short stocks by borrowing.

 

[Platinumstartvf]

You must cover the short by buying back the amount that you sold within the same day that you sold the stocks. If you fail to do so, you will receive a love letter from SGX, and you will have to pay a fine.

Understood with thanks.

 

[alexchia01]

I think it's $1,000 per day as long as the position is not closed.

 

[Platinumstartvf]

I think it's $1,000 per day as long as the position is not closed.

No idea but heard from DBS Vickers it was near $2,000 or so... the DBS Vickers people also say not sure what's the penalty.... as if short selling is a crime.

 

[bright_84]

No idea but heard from DBS Vickers it was near $2,000 or so... the DBS Vickers people also say not sure what's the penalty.... as if short selling is a crime.

To longs it is haha

 

[lkhwee]

If you want to short, can borrow shares from SGX To short. Interest i think 6%

 

[wira]

easiest is to trade CFDs if you want to short

 

[Shiny Things]

So how do you express a bearish view on stocks in SG then? Are there single stock futures? In India there are certain stocks with futures contracts because there also no borrowing and shorting allowed.

In the US, I believe you can short stocks by borrowing.

There’s a stock borrow/lend market in Singapore, but as I understand it it’s horrifically illiquid compared to the US markets. The borrow/lend rates are fixed at 6% and 4% respectively, so you end up with giant supply-demand imbalances; not a lot of accounts participate; I’m not sure why you’d bother really. (Singapore equity guys, correct me if I’m wrong!)

 

[Platinumstartvf]

There’s a stock borrow/lend market in Singapore, but as I understand it it’s horrifically illiquid compared to the US markets. The borrow/lend rates are fixed at 6% and 4% respectively, so you end up with giant supply-demand imbalances; not a lot of accounts participate; I’m not sure why you’d bother really. (Singapore equity guys, correct me if I’m wrong!)

Yep based on my research, definately on the losing end if I want to do short selling in Singapore market. Not that I bother much about short selling in Singapore but rather curious to find out in details before I even plan to put any money on the line. Would rather do it in the US market.