HELP: Understanding Short Selling & Penalties imposed for not squaring off

[gauharjk]

Hi friends...

I am new to stock trading. My broker is Motilal Oswal.

I had 13500 cash in my trading account. Yesterday, I shorted 500 Unitech @ 30.60. But in the end, Unitech rose to 31.85 and I lost around 650 on it...

I was not on the PC and did not manually square off the deal. I thought it will happen automatically...

But today, my account shows only 7000 in cash... How did I lose so much money? Was that some penalty for not squaring the deal?

Help. I am trying to contact customer service but may have to go there personally to sort it out.

Any help is appreciated.

 

[TraderInTheZONE]

I think your shares will go for auction..

 

[elthough]

What happens actually in auction ?

 

[gauharjk]

My Shares were auctioned and they imposed a 15% penalty on me...

I have learnt to always square-off all trades, especially the shorts, even if I am making a loss...

Day Trading is a sort of gambling... you win some... but you lose a lot...

 

[sanjay pandya]

auctained may be possible for your trade