A Strange Problem

Discussion in 'Equities' started by swagat86, Aug 4, 2006.

  1. swagat86

    swagat86 Active Member

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    Hey frnds a strange Question came to my mind so just askin.
    Say a stock has an Upper circuit of 5%, I Short Sell it when it is 4% up. It goes up and gets locked in circuit and never comes out. wat happens at the end of Settlement?
    Pls do reply Fellas

    Chills
     
  2. JERYJACK007

    JERYJACK007 New Member

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    Well, first of all you should not practise such trades especially when you know that you are nearby filters. Although don't be panic, you have to give delivery to DP if you have those stocks in your portfolio, before matter goes to auction. Trade Safely!
     
  3. ping_manoj

    ping_manoj Member

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    A pesimist says things cant go worse.
    A optimist knows they can.

    Further, if you have made that trade with full force(means with all the money that you had) and you are now not able to buy anything back, then you are going to be hit hard, very hard...humm.... very very hard. Its happened to me. I lost a GOOD amount of money as penalty.
    Maybe you would want to research the "penalty" procedure on NSE for such mistaken (sadly, misrebly mistaken) trades
     
  4. swagat86

    swagat86 Active Member

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    oh tell me somethin, is it illegal to place opposite order near circuits? no definitely not so wats the problem? secondly Im talkin of Intraday trade my frnds. Im sure u guys know that a sell position in cash market cannot be talken delivery of. So thats wat my question is, do i hav to undergo Auction Manoj and if so whats the procedure?
     
  5. ping_manoj

    ping_manoj Member

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    If you ShortSell in the cash market and dont square off on the same day, then NSE will give you 2 days to provide the stocks. If you fail to do so then NSE will buy the stocks on ur behalf, at the market price and hand over to the buyer, and over and above charge some 15% penalty to you. I hope that clarifies.
     
  6. chachi

    chachi Active Member

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    Hi Swagat,

    This problem of yours is very common in the market I beleive. Infact I have been a victim of it few months back. I shortsold GESCOCORP when it was nearing to its upper circuit in the closing hours of day trading (3.00PM). Within minutes I was caught as it touched the upper circuit. (Later I learnt that it is Market makers who play this kind of game. I mean they catch many shortsellers at its uppercircuit, and as the day trading time gets over, the scrip again opens for trading.)

    I could not buy as there were no sellers before the time period. At that point of time as I had few shares of it as long, they taken qway from my account and as well as the remaing no. of shares amount. Hence my money also got blocked for about a week as the auction from NSE takes some time. Finally I got the remaing amount with a huge penalty. Hence be cautios while trading opposite at its limit. Of course it is not illeagal, only u pay hefty penalty!!!
     

  7. ping_manoj

    ping_manoj Member

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    Hold you breath....
    I did this on BEML when it was on a up trend. 150 numbers.
    Calculate the losses.

    NOTE: Dont even calculate if you have a weak heart. :)
     
  8. swagat86

    swagat86 Active Member

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    For an intraday posiition im sure a person takes a leveraged position. So manoj does he/she loose all their money that is the leverages Amt?? If the same situation occurs for the LONG postion wat happens then?
     
  9. marcus

    marcus Active Member

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    wow .... wicked!! thanx for the heads up
     
  10. ratan jain

    ratan jain Guest

    Swagat:

    What scrip did u get stuck in? :)

    Hey bro, there are many other less painful ways to end your trading career :) Why u wanna do it in one day? :)
     
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