galvanise,
ASX shorts ONLY cover borrowed stock.
If you buy a stock from someone who is shorting, how do you think settlement occurs if the seller doesn't own the stock? He HAS to borrow it.
Traders who short the market may not be aware, but the short sale cannot occur unless borrowing arrangements are in place.
The only way to short an ASX stock without borrowing is to "short" using CFD's through a Market Maker (bucket shop)
Cheers
ST
