Short trading doomed

#1
Hello Traderji's,

I think, I'm direly need some help,

I shorted(sold) a 100 shares of Infosys(BSE) on 12th October and called my broker to buy them for me(as there was a power outage) to square off on intrady.

The moron from the branch bought in NSE instead on BSE. Now he says meek sorry and asks me to wait for two more days for the settlement as the stock sold on BSE was sent to "Action Marekt" and the stock bought on NSE takes 2 days to be delivered to my dmat account. Then they would settle it based on the price at that time.

My broker says the shorted stocks will be sent to Action Market for settlement after two days. I don't understand what is action market.

I'am a newbie here and I'am confused, how I can take control of the situation. Experienced Traderjis, your help is be very much appreciated.


Thanks and Regards
Passion Trader
 
Last edited:

SexyTrader

Well-Known Member
#2
Hello Traderji's,

I think, I'm direly need some help,

I shorted(sold) a 100 shares of Infosys(BSE) on 12th October and called my broker to buy them for me(as there was a power outage) to square off on intrady.

The moron from the branch bought in NSE instead on BSE. Now he says meek sorry and asks me to wait for two more days for the settlement as the stock sold on BSE was sent to "Action Marekt" and the stock bought on NSE takes 2 days to be delivered to my dmat account. Then they would settle it based on the price at that time.

My broker says the shorted stocks will be sent to Action Market for settlement after two days. I don't understand what is action market.

I'am a newbie here and I'am confused, how I can take control of the situation. Experienced Traderjis, your help is be very much appreciated.


Thanks and Regards
Passion Trader
Auction market....with lot of action in it :)

Take delivery of the stock....simple! And hold onto it for short-term profits...no need for rapid buy-sell unless you are doing pure INTRADAY!
 

NOMINDTR

Well-Known Member
#3
Hello Traderji's,

I think, I'm direly need some help,

I shorted(sold) a 100 shares of Infosys(BSE) on 12th October and called my broker to buy them for me(as there was a power outage) to square off on intrady.

The moron from the branch bought in NSE instead on BSE. Now he says meek sorry and asks me to wait for two more days for the settlement as the stock sold on BSE was sent to "Action Marekt" and the stock bought on NSE takes 2 days to be delivered to my dmat account. Then they would settle it based on the price at that time.

My broker says the shorted stocks will be sent to Action Market for settlement after two days. I don't understand what is action market.

I'am a newbie here and I'am confused, how I can take control of the situation. Experienced Traderjis, your help is be very much appreciated.


Thanks and Regards
Passion Trader
You have sold (shorted) shares on BSE, assume somebody had bought from you those shares. As you did not buy on the same day, at the end of the day, you will not have infosys shares to give to the person whom bought from you.

This is called 'bad delivery'. So the exchange would buy those shares on your behalf on auction and they would add some penalty (forget how this happens to avoid further confusion), and will charge you. This creates trouble only when markets move drastically against your position.

So, understand that you have no shares in your demat but you have sold it to somebody and you fail to give delivery to whom you sold.
 

Similar threads