A Strange Problem

swagat86 · #1 4th August 2006, 01:07 AM

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

JERYJACK007 · #2 4th August 2006, 01:19 AM

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!

ping_manoj · #3 4th August 2006, 09:25 AM

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

swagat86 · #4 4th August 2006, 03:27 PM

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?

ping_manoj · #5 4th August 2006, 03:40 PM

Quote:

Originally Posted by swagat86

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?

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.

chachi · #6 4th August 2006, 05:05 PM

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!!!

ping_manoj · #7 4th August 2006, 05:12 PM

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.

swagat86 · #8 4th August 2006, 11:58 PM

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?

marcus · #9 26th August 2007, 06:52 AM

wow .... wicked!! thanx for the heads up

ratan jain · #10 26th August 2007, 10:25 AM

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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