Hi traders,
I'd a discussion with Sharekhan staff regarding delivery and settlement.
Many traders are not clear about these procedures and suffer losses. Let me put across what I've understood, hoping it may be helpful. Do correct me if I'm wrong:
I'd a discussion with Sharekhan staff regarding delivery and settlement.
Many traders are not clear about these procedures and suffer losses. Let me put across what I've understood, hoping it may be helpful. Do correct me if I'm wrong:
- Swing trading has more charges overall than intraday. Generally, a price change of atleast 2% is needed to make any profit.
- The shares which you buy today, must arrive in your account before you sell them.
- If the trader from whom you bought them had short sold them and did not buy back at EOD, you will not get delivery.
- In such a case if you sell them, it will be considered a short sell.
- This will lead to your sold shares being bought for auction on T+2 day. This may or may not be for a profit.
- The auction is during after market hours.
- The profit/loss from the first sale would become nil. The profit/loss will be from the auction. There is no clarity about whether the price range of the auction will be the same as the price range of the day.
- After the auction the shares will be credited to your account, as your sale had become invalid.