Auction

F

fast_rizwaan

Active Member
#2
#2
based on availability of the shorted stocks (which is usually higher) or at 15% penalty.

1. say you've shorted abc@100, and could not cover
2. on 3rd day, auction will be initiated, and the current market price will be used to cover the shorts.
3. if abc is available at 101, then you incurred 1re loss
4. if abc goes down to say 99 then you'll be getting 1re as refund.

Don't worry, it's the price we have to pay to learn the basics!
 
U

uasish

Guest
#3
#3
After T+2 (when they come to know the failed Delivery Status),as fast_rizwaan mentioned ,but 15 mins before Mkt opens these activities are done with,usually the earlier Day's Closing Price,say on T+4 they are accquiring the shares for you in the morn 9.15 then T+3's Closing price.
Apart from the Price diff. as fast_rizwan mentioned they charge Hefty Penalty & Interest Cost.
 
bandlab2

bandlab2

Well-Known Member
#4
#4
uasish said:
After T+2 (when they come to know the failed Delivery Status),as fast_rizwaan mentioned ,but 15 mins before Mkt opens these activities are done with,usually the earlier Day's Closing Price,say on T+4 they are accquiring the shares for you in the morn 9.15 then T+3's Closing price.
Apart from the Price diff. as fast_rizwan mentioned they charge Hefty Penalty & Interest Cost.
Click to expand...
the penalty 15% is on 1 rs or 100 rs in the above example ?

also the day when auction is done is fixed ? or it changes as T3, T4, T5 ?
 
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