Here’s a scenario:
A short 100 qty of X for Rs 500 (intraday)
B buys 100 qty of X at Rs 500 from A
Price move to 510, A buy 100 qty of X from C and booked loss of Rs 1000(10x100)
Now C is obliged to give delivery to B on Day 3(T+2) right?
price moves further up & B sells 100 qty of X @530 to D by Day 5(T+2) right?
- If C is fresh seller (i.e. share already present in demat) then B doesn’t have risk for auction penalty?
- If C is short seller then B has risk for auction penalty right? but doesn’t all brokers (discount / full service) close all intraday position on the same day?
- If X doesn’t hit upper circuit? on Day 1 (i.e T day) what are the chances for auction penalty?
- All brokers (discount / full service) close intraday position right, if upper circuit then it goes for auction on (T+1) day?
- if X hits upper circuit on Day 2 (T+1 day) after selling to D, what are the chances for auction penalty?
I’m a swing trader mostly trade Nifty 50 shares and sometimes Next 50 shares, what are the chances of facing auction penalty?