QUOTE(purple @ Jun 22 2006, 02:07 AM)
mobiusone, mind to explain futher how does the short selling of futures work?.. what i understand abt short selling is the sales of borrowed securities....how r we goin to borrow securities from brokerage frim to short sell them?
theoretically,that is how short selling works.You borrow,then you sell and in the end you buy back.
but lets make it plain and simple,short selling is opposite of buying/long.
In a long position,you make money when they price goes up.In an inverse order,short is where you make money when the price goes down(provided you are holding a short position)
short selling in the futures market is a bit different from stocks(local).
In the futures market,the process is very easy and could be done swiftly.Just like a normal buying order,you just tell your broker you wish to enter a short position,and your broker will queue your position at your desired price and wait for it to be done.When you think you had made enough money or wished to cut loss,just tell your broker to buy back/close your short position.