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| Discuss Trading Confusions at the Beginners Guide within the Traderji.com - Discussion forum for Stocks Commodities & Forex; IF I SHORT SELL A SHARE XYZ @10 ON MARGIN. AND LATER IF ITS PRICE ... |
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#1
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IF I SHORT SELL A SHARE XYZ @10 ON MARGIN. AND LATER IF ITS PRICE BECOME Rs. 20. THEN IF I DECIDE NOT TO SQURE OFF MY POSION BUT RATHER CONVERT IT INTO DELIVERY. AT WHAT RATE WILL I BUY THE SHARES Rs. 10 OR Rs. 20 ?
Last edited by Abhishek.Prasad; 22nd May 2008 at 07:52 AM. |
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#2
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When You Have Already Sold What Delivery You Will Be Take. You Can Square Up The Transaction Only.
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#3
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Shorselling intraday is OK. But be careful to square off(buy) well before the close. Sometimes during the last half hour or so you will have difficulty placinf the order. If you dont buy back you will have to have the stock in your demat account or else it will go for auction settlement which is very bad for you. Also shortsell those stock which do not have circuit limit because if it touches the upper circuit there will be only buyers and no sellers. Do not short sell trade for trade stock too (unless you own it).
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#4
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Quote:
Situation is different if you have shares in your account. In such cases (i.e. when you sold shares while having them in your account) you will have to give delivery. In any case, you have to decide before the closure of the market on the day on which you sold them. To square up your position or to give delivery. You do not have a third choice. But rules regarding auction are very stringent. Incase you do not give delivery of shares sold by you, you are exposing yourself to extreme risks. I never ever advice such a thing to any one. In nutshell, give delivery of shares if you have them in your account. In case you donot have them, then ensure that you square up your position before the closure of the market for the day. |
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