Short Selling

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Vijay Kumar (Querist)
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23 March 2011 Hi,

I sold 100 Kamath Hotels Shares @ 96 and put a Stop Loss but the Shares suddenly Jumped and went on to had a upper circuit.
And i wasnt able to buy the same
My Broker told me that i will have to pay some penalty for it
Pls tell me what will be the consequences of it now?

Is it a normal thing that happen??

Pls reply at earliest!

ALLU

ALLU (Expert)
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24 March 2011 HI

AS PER YOUR DESCRIPTION, I CAME TO KNOW THAT IT WAS SHORT SELLING

FIRST : SELL (AT HIGHEST RATE)

SECOND : BUY (AT LOWEST RATE)

BUT IN YOUR CASES MARKET AND THAT PARTICULAR SCRIPT HAS GONE UP AND YOU HAVE NOT BOUGHT ANY SHARES ............? DIDN'T YOU?

IN THIS CASE ON THE T+2 (10:AM)BASIS THE BROKER WILL TAKE CARE AND BUY FROM STOCK MARKET THROUGH AUCTION AND 100 SHARES WILL BE YOURS

BUT ON THE T+2 YOU CAN MAKE PROFIT OR LOSS DEPEDNING UPON THE SCRIPT VALUE , Rs 93 you get profit Rs 98 you will loss

AND YOUR SHARES WILL BE BOUGHT BY "ADDING BORKERAGE " AND "INTERST CHARGES "

REGRADS

ALLU

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Vijay Kumar

Vijay Kumar (Querist)
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24 March 2011 First of All!
Tanx for the reply

But in practical does anyone actually get profit by such auction