Buy today Sell tomorrow query

BTST discussion
Here’s a scenario:

Day 1:
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?

Day 2:
price moves further up & B sells 100 qty of X @530 to D by Day 5(T+2) right?


  1. If C is fresh seller (i.e. share already present in demat) then B doesn’t have risk for auction penalty?
  2. 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?
  3. If X doesn’t hit upper circuit? on Day 1 (i.e T day) what are the chances for auction penalty?
  4. All brokers (discount / full service) close intraday position right, if upper circuit then it goes for auction on (T+1) day?
  5. 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?

you are fretting too much over this… the scenarios with other party aren’t in our hands, one thing you need to keep in mind… risk of short delivery is inherent risk of btst… yeh the chances are low in liquid stocks especially those trading in f&o segment but there is still that 1 percent risk…

if you want to do btst… you have to accept this and continue with your trading… drawing up scenarios which aren’t in our hands isn’t helpful at all…