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Short-selling Part 2

DanielXX (December 16th, 2007) Writes:
(P.S: Sorry for any disturbances the advertisements above may have caused you)We start with the SBL account, an abbreviation for Shares Borrowing and Lending. This is the traditional method for short-selling, whereby one borrows from a pool of ready-for-lending securities in order to sell short. This enables the trader to hold longer than if he were doing "naked" short-selling, where he basically just sells the stock short without borrowing scrip. In naked short-selling, one has to cover within the same day or else SGX will do it for him over T+3 period, at unknown prices. The trader with the SBL account has the luxury of holding his short position, albeit curtailed in some ways (will be explained shortly).SGX does facilitate SBL accounts by providing a ready pool of various companies' stocks for lending to interested parties. The list can be found in the ...

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