Negative Ledger Balance

#1
Hello!

On 21st Sept 18 I bought 1000 DHFL at 464 MIS at 12:37 PM using margin , By initial I had 50 K in my trading account.
DHFL went down drastically,The problem here is my broker(Upstox) sold my shares at 366(12:47 PM) My RMS squareoff is 70% of my capital so approx square off price should be near 430-425 (at 12:42 PM) the price momentum was very fast but still he sold at huge difference which is costing me -49k.My ledger balance is negative 49k
can any one please suggest me what can be done for this.who is responsible for the losses?. Will it be a RMS failure.
Your help is appreciated.

Thanks
 
#2
Intraday, it is possible that the huge volatility didn't give any trader/broker a chance to bail out in time. With MIS order, there is no stoploss order placed. The RMS kicks in when the critical situation is triggered. Maybe there was a reaction time lag which caused the order to be squared off at a much lower price.

But the arithmatic doesn't seem to add up. You had a loss of 98Rs. on 464 shares i.e. approx Rs. 46000 loss. You had 50k in your account and with this loss you should have something like 3-4000 in your account.
 
#3
Intraday, it is possible that the huge volatility didn't give any trader/broker a chance to bail out in time. With MIS order, there is no stoploss order placed. The RMS kicks in when the critical situation is triggered. Maybe there was a reaction time lag which caused the order to be squared off at a much lower price.

But the arithmatic doesn't seem to add up. You had a loss of 98Rs. on 464 shares i.e. approx Rs. 46000 loss. You had 50k in your account and with this loss you should have something like 3-4000 in your account.
1000*98=98k-50k=loss+charges=49k
 

TraderRavi

low risk profile
#6
its not broker's responsibility. trader is responsible for squaring off his trades.
 
#7
told like they dint get time as the momentum was fast and told to clear dues. Any suggestions ?
Was the communication verbal or written (mail)? Try to get as much interaction in writing as possible. Raise a ticket etc.

Save copies of your orderbook, tradebook, contract notes etc. The trade timings will be there. Maybe that will shed some light on what exactly happened and when. If possible, post the screenshot of the orderbook/tradebook/contract note here too.
 

Biker

Active Member
#9
I had got upstox mobile notification that day that because of volatility the square off will be at 3 pm instead of 3.15 pm

But dont you think that its beneficial to you that they sold your shares early?... if you had sold late than u'd be having more losses..
 

superman

Well-Known Member
#10
The fall was so drastic no RMS would be able to handle it ! Any broker have legal right to square off at any cost and any time once that loss MTM threshold is broken.

So , you are are responsible for losses.
You just got hammered by a tsunami that happens very very rarely. Bad luck but your positions are also significant . 1000 DHFL stock is a huge position for a single trade !
 

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