AUTO SQUARE-OFF feature

columbus

columbus

Well-Known Member
#1
#1
All Intraday traders are aware of this feature.When ever our trades are GREEN then the auto square off feature is implemented sharply at the APPOINTED time (may at 3.00PM or 3.15 PM as per the brokerage house rules) on the other hand if they are RED then OPEN positions will not be closed ,even beyond 3.25PM.

It is argued that MOST of the Intra day traders LOSE money.Perhaps this is one of the reasons.Perhaps the main reason for Intraday trade is the lure that they attract LOW margin levels.

It is always better to the choose the DELIVERY option even though it costs more.You have noticed that you take a particular share with an idea of selling it at a higher price and takes it in for INTRADAY settlement.Often they will rise 10~15% after your order is AUTO SQUARED OFF.What a loss ?
 
F

fire_gun

Member
#2
#2
columbus said:
All Intraday traders are aware of this feature.When ever our trades are GREEN then the auto square off feature is implemented sharply at the APPOINTED time (may at 3.00PM or 3.15 PM as per the brokerage house rules) on the other hand if they are RED then OPEN positions will not be closed ,even beyond 3.25PM.

It is argued that MOST of the Intra day traders LOSE money.Perhaps this is one of the reasons.Perhaps the main reason for Intraday trade is the lure that they attract LOW margin levels.

It is always better to the choose the DELIVERY option even though it costs more.You have noticed that you take a particular share with an idea of selling it at a higher price and takes it in for INTRADAY settlement.Often they will rise 10~15% after your order is AUTO SQUARED OFF.What a loss ?
Click to expand...
it holds no water....a stock depends on demand and supply rule..so if demand is higher then nothing matters..u may see stocks closing almost on the high of intraday...now we r entering in range bounds markets where stocks make intraday high on opening or makes intra day in noon then comes down from days high...
 
A

accentindia

Member
#3
#3
columbus said:
All Intraday traders are aware of this feature.When ever our trades are GREEN then the auto square off feature is implemented sharply at the APPOINTED time (may at 3.00PM or 3.15 PM as per the brokerage house rules) on the other hand if they are RED then OPEN positions will not be closed ,even beyond 3.25PM.

It is argued that MOST of the Intra day traders LOSE money.Perhaps this is one of the reasons.Perhaps the main reason for Intraday trade is the lure that they attract LOW margin levels.

It is always better to the choose the DELIVERY option even though it costs more.You have noticed that you take a particular share with an idea of selling it at a higher price and takes it in for INTRADAY settlement.Often they will rise 10~15% after your order is AUTO SQUARED OFF.What a loss ?
Click to expand...

ya you are right in auto square off it selects market rate as an option and the buy or sell order price zooms

god never ever let the system square-off !!!!!:eek:
 
S

superprogrammer

Active Member
#4
#4
fire_gun said:
it holds no water....a stock depends on demand and supply rule..so if demand is higher then nothing matters..u may see stocks closing almost on the high of intraday...now we r entering in range bounds markets where stocks make intraday high on opening or makes intra day in noon then comes down from days high...
Click to expand...
One perfect example of such stock rising high after 3 pm is EDUCOMP!
 
H

harshatmehta

Member
#5
#5
SEBI ordered to stop broking firms from Auto Square off many months back. But still my shares were autosquared off even when I had enough balance on my own. When I questioned they said SEBI rule is for computerised auto square off and they are doing it manually :mad:
 
A

accentindia

Member
#6
#6
columbus said:
All Intraday traders are aware of this feature.When ever our trades are GREEN then the auto square off feature is implemented sharply at the APPOINTED time (may at 3.00PM or 3.15 PM as per the brokerage house rules) on the other hand if they are RED then OPEN positions will not be closed ,even beyond 3.25PM.

It is argued that MOST of the Intra day traders LOSE money.Perhaps this is one of the reasons.Perhaps the main reason for Intraday trade is the lure that they attract LOW margin levels.

It is always better to the choose the DELIVERY option even though it costs more.You have noticed that you take a particular share with an idea of selling it at a higher price and takes it in for INTRADAY settlement.Often they will rise 10~15% after your order is AUTO SQUARED OFF.What a loss ?
Click to expand...
you have just not considered short selling stocks in your above reasoning!!!:rolleyes:
 
T

trader.trends

Well-Known Member
#7
#7
Most of the intraday traders lose money, because of this auto square off feature? That seems a little specious reasoning. If they have not made money between 955-315, it is unlikely that another fifteen minutes will see them in profit. We will always remember the incidents when the share shot up after the auto square off but forget the days when the losses would have mounted but for the auto square off.
 
A

accentindia

Member
#8
#8
trader.trends said:
Most of the intraday traders lose money, because of this auto square off feature? That seems a little specious reasoning. If they have not made money between 955-315, it is unlikely that another fifteen minutes will see them in profit. We will always remember the incidents when the share shot up after the auto square off but forget the days when the losses would have mounted but for the auto square off.
Click to expand...
well you cannot genaralize the auto square off feature,
the simple reason is that auto square off executes at market rates, which is bound to coz huge losses, as it executes in split second manner.

it just sucks up all the next standing buyers or sellers, with no wait time what so ever,

at HSBC i have incurred huge losses whenever there was a auto square off

in one case i was forced to sell at 15 % loss.

i personally dread the auto sqaure off feature,:annoyed:

a big no for large volume intra day traders, :mad:
 
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