short selling however not covered the same day

A

anshul.sabhlok

New Member
#1
#1
Hey,

i have an query. i have short sell 1250 quantity however was not able to cover the same day.

my broker told me that it will go in auction for T+3 days..

he also told me that the shares will be bought on the high rate for T+3days and there will be a penalty as well..


can anyone expalin me that is this the case if yes then how the penalty is ?? is that on the diffrence amount or on the amount of the entire quantity ?

reagrds
Anshul
 
M

MindlessTrader

Well-Known Member
#2
#2
anshul.sabhlok said:
Hey,

i have an query. i have short sell 1250 quantity however was not able to cover the same day.

my broker told me that it will go in auction for T+3 days..

he also told me that the shares will be bought on the high rate for T+3days and there will be a penalty as well..


can anyone expalin me that is this the case if yes then how the penalty is ?? is that on the diffrence amount or on the amount of the entire quantity ?

reagrds
Anshul
Click to expand...
bro .... " short not covered " ...yeah paap sab ne kiya hai..par sirf ek hi baar..doubara nahin .. kaan pakar lena...:(
 
A

anshul.sabhlok

New Member
#3
#3
thanks for your reply.

i have shorted 1254 shares of JHS for 122.90.

the high price on t day was 128.00 and closing was 122.40
the high price on t+1 day was 127.40 and closing was 122.40
the high price on t+2 day was 122.90 and closing was 117.65
t+3 day is tmorow on monday.

i have read on the web it says that it will be bought on the highest closing price in t+3days.
some says it will be bought on the highest price in t+3days
few says it will be bought on highest price in t+3days + 20% that means eg: 128.00 was the highest + 20% = 153.60

153.60 - 122.90 = 30.70 * 1254 shares = 38,497 will this my lose be?

can you please give me an approx amount that what my lose would be ?
 
H

hills_5000

Well-Known Member
#4
#4
The 20% penalty is NSE rule and not that of the broker.

Auction day highest price plus 20% is what you will be billed and the entry will show in your NSECASH ledger as "Auction Bill".

Don't take it to heart. Lesson well learnt should be the outlook.



anshul.sabhlok said:
thanks for your reply.

i have shorted 1254 shares of JHS for 122.90.

the high price on t day was 128.00 and closing was 122.40
the high price on t+1 day was 127.40 and closing was 122.40
the high price on t+2 day was 122.90 and closing was 117.65
t+3 day is tmorow on monday.

i have read on the web it says that it will be bought on the highest closing price in t+3days.
some says it will be bought on the highest price in t+3days
few says it will be bought on highest price in t+3days + 20% that means eg: 128.00 was the highest + 20% = 153.60

153.60 - 122.90 = 30.70 * 1254 shares = 38,497 will this my lose be?

can you please give me an approx amount that what my lose would be ?
Click to expand...
 
M

MindlessTrader

Well-Known Member
#5
#5
My example I once shorted 300 shares @ 730 ..then on auction day auction price was @ 761...so i have to pay 761 - 730 = 31 x 300 = 9000 + delivery brokerage...total around 11 - 12000...so it depends on auction price...no 20% penalty etc...this 20% penalty comes into picture when nobody sells the share at auction, which is rare i think....hope it helps..
 
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