Today when stock is at 20% upper circuit, I shorted RCF at the end of day around 2.50 pm in anticipation that profit booking would be seen in stock at 3 pm, when i shorted it, it was at 20% upper circuit. To my bad, it didnt fell and buy orders built up in stock i ended up unable to buy back.
I was so fooled by my profits of 20,000 /- prior to this trade today that i didnt even noticed/read NUDGE message. Fell into short delivery trap. Quantity is 5000, what will happen to my account now? If it goes to auction , will they be sold there? does auction markets have liquidity? Or I’ll get heavily penalized?
You will pay Quantity * price difference from what it is bought at auction. The auction process is not transparent, even Zerodha doesn’t say much. What I did was I deposited the entire trade amount as cash into my account. It deducted the difference 2 days later (T+2) in the evening based on auction settlement.
If tomorrow also it hits upper circuit then you should start worrying. Because it cannot be bought in auction also then
Yes 120% is worst case, just in case it hits UC tomorrow too. I had deposited my trade value (total qt * selling price) only and it subtracted from that
