Algo trading equities. How to manage stock deliveries

#1
Newbie question.
If I run my algo and it buys stock x today and wants to sell it tomorrow. In this case the stock is not yet delivered since it was bought yesterday only. (T+2). How do people manage this? Any suggestions?
Or do all algo traders use only futures and options?
 

against_tides

Well-Known Member
#2
Newbie question.
If I run my algo and it buys stock x today and wants to sell it tomorrow. In this case the stock is not yet delivered since it was bought yesterday only. (T+2). How do people manage this? Any suggestions?
Or do all algo traders use only futures and options?
Which algo do you use..

I think if you can sell it manually it should not have problem in selling it either is all it does is to send the order to exchange automatically
 
#3
Thanks for the reply. I think I didn’t make my question clear. Essentially I want to understand whether we can buy today and sell tomorrow for long term (with algo) without risk of auction and other fees.
 

against_tides

Well-Known Member
#4
Thanks for the reply. I think I didn’t make my question clear. Essentially I want to understand whether we can buy today and sell tomorrow for long term (with algo) without risk of auction and other fees.

Imo Algo trading is just automation of order placement.
How you can buy and sell depends upon the exchange and the specific share.
For few shares you have to take delivery before selling it but others you can sell on very next day or same day
 

Raj232

Well-Known Member
#5
Thanks for the reply. I think I didn’t make my question clear. Essentially I want to understand whether we can buy today and sell tomorrow for long term (with algo) without risk of auction and other fees.
For But Today Sell Tomorrow (BTST) trades, the normal BTST rules would apply that the broker would allow. Algo refers to placing orders automatically in the trading platform according to some set criteria.
Whether it would work out ll depends on whether the algo can correctly query your demat account to check of the delivered shares, margins , etc before trying to sell them in the market.
 

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