I am new to Fno and I have heard term shorting as a way to profit when markets fall.

Is shorting selling all option or buying put option

It is said that selling does not require beforehand buying then what are the problems with selling (how do we get profit by selling) pls explain with example

also can we buy only one lot I am thinking of shorting mini nifty as it has lower number of shares hence lower risk for beginners like me

Is margin requirement means we have to put 25% amount(ICICI Account) in our account or should we give the amount to broker's account

Does Squaring off and exercise results in two trades or single trade

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We short (sell) a Call Option if our view is bearish.


We long (buy) a Put Option if our view is Bearish.
We long(buy) a Call Option if our view is Bullish.


We short (sell) a Put Option if our view is Bullish.


You can only short sell in Futures...You Sell one lot of Futures of Reliance at 1900.00 and the price goes down to 1600.00 Now you buy back what you had sold at 1900 at current rate of 1600, you gain 1900-1600=300


You can either Square off your position by taking a counter position, i.e. you sell if you had bought and you Buy if you had Sold earlier!!

You cannot square off your trade and exercise it too!! These are two different things. You either square off or you exercise!!!

Have posted a link above, download and go through the file, may be of some assistance to you!!!


Warning : Options can be dangerous if traded with partial knowledge!!!