Have I lost my money completely or can I recover it?

I bought 200 Qty of UPL at 562 on MIS today morning. My order got squared off on BSE at 546.19 by ADMINSQF (Zerodha admin) and after few minutes we got a notification stating that we can ignore the short since it’s squared off.

After few minutes got one more notification stating the market is opened till 5 pm and MIS orders will be squared off at 4.15 pm.

So do I lose 3200 Rs now (562 - 546.19 = 16 * 200)?

Because, if we got the notification about the market being opened till 5 PM. I could’ve exited my MIS position at 4.15 PM (since that was the time for auto square off)

They could’ve not auto squared it off and let us trade it till 4.15 PM. since the stock went till 567 when the markets opened.

If they auto squared off u lost it finally. Nothing can be done no matter when markets reopened. Better luck next time.

The ignore notification is to highlight that the short in bse is just a opposite position of nse. But watever squared off is done for good

No broker was informed of this extension until 3:17 pm. Had brokers known that Markets were to get extended, they wouldn’t have squared off positions. In the interest of the clients and to avoid any overnight risk, the Equity position was squared off on BSE.

4 Likes

@VenuMadhav Thank you for the reply. Could you throw some light as to why the execution price was marked at a lesser price? was it due to UPL being traded at a low rate in BSE?

hi venu

i agree on overnight risk , what abt intra day overnight postn of nse fno, currency.

u would have allowed with cf postn in nse equity since u are sitting with min 25% margin for delivery postn. since exchange opened it would have been other say.

but system not allowed to take postn after selling of postn in BSE. it utilized margin on both side. if u are non bse broker how u would have acted upon.

secondly clients started to taken postn once the nse link went away and liquidity was big factor when u went with bse. see the rates of selling price and avg price / close price there is vast difference.

dont look for your safety look for client hard money safety to be considered.

3 Likes

@VenuMadhav @nithin although the policy was in customers interest , still client could had been given the opportunity to decline this square off and bear the consequences or bring in more margins end of day ,specially someone trading with big amounts reason being liquidity.

1 Like

Unfortunately SEBI has barred this as well. All consequences to be bore by brokers only even if clients do not want this.

Instead of zerodha doing the square off, the users could have given the option to exit in BSE.
That would have avoided the blood bath.
User’s could have negotiated a better price.

1 Like

I made a twitter list of traders who lost money due to brokers glitches today.

https://twitter.com/i/lists/1364548841022758913?s=20

These are just few. SO many more will have suffered today.

1 Like

Sorry to be devils advocate here : All of you were aware that BSE liquidity is a joke and your clients will suffer horrible loss if you square off positions - This is done not as per clients interests but more on brokers interest.

Since this was market wide disaster - NSE would have waived the auction penalty or could have allowed counter positions at pre-open tomorrow or could have used the IPF for making sure there are no drastic loss to clients.

My point is you never know what would have happened if you have kept client positions intact - All brokers took the path of least risk on them and not the clients . It is just common sense to understand NSE will come up with some means for open positions for sure since they had not opened the market by 3:-3:15 !

I am glad I quit trading - This is a no win market for retailers - Brokers screw you , Exchanges screw you , SEBI Screws you ! - Best is to just sit tight with some index fund as it appears due to RBI , FED the market rally will never stop. Sorry for those who lost due to BSE liquidity - I can only offer one advice to them - Quit the trading before it kills you - Only brokers, exchanges and 0.1% of traders make money here.

1 Like