What happens if you buy and sell stock before T+2 deilivery?

#1
Lets say I have brought SBI stock today friday at 10.30am (T day) hoping that it will go up for next 20 days and for safety I also added a stop loss of 10 percentage to it. In India we get stock delivered by T+2 day so I will get my stock on monday(sat,sun holiday)

These are my scenario
  • Because of some out of control sitution SBI stock tumbles and falls below 10 percentage (assume 20% fall) of my stoploss at T(2:00pm today) or T+1 day. What would happen here?
  • Whether the stop loss will automatically sell the SBI stock?
  • What happens when stop loss hits at T day, T+1 day and T+2 day separately
  • Do we have to pay any penalty for selling stocks(using stop loss) which are not delivered?
 

deba72

Well-Known Member
#2
Lets say I have brought SBI stock today friday at 10.30am (T day) hoping that it will go up for next 20 days and for safety I also added a stop loss of 10 percentage to it. In India we get stock delivered by T+2 day so I will get my stock on monday(sat,sun holiday)

These are my scenario
  • Because of some out of control sitution SBI stock tumbles and falls below 10 percentage (assume 20% fall) of my stoploss at T(2:00pm today) or T+1 day. What would happen here?
  • Whether the stop loss will automatically sell the SBI stock?
  • What happens when stop loss hits at T day, T+1 day and T+2 day separately
  • Do we have to pay any penalty for selling stocks(using stop loss) which are not delivered?

T+2 settlement does not include holidays. So if you buy on Friday you will get the stocks on Tuesday second half.

You can sell the stock on Monday but it will carry the risk of short delivery. In case, there is any short delivery for your purchase, your sell transaction would also attract penalties and auction unless your broker is willing to make up for the shortfall from their pool account.

I don't think any broker offers Stoploss for a particular number of days so you have to put your stoploss daily after market opens