Yesterday I shorted 230 stocks for 381 but it hit upper circuit 
at 390 .i was not able to close the position what will be my total loss now I am scared. It was my friends money kindly give me some rough estimate of loss after settlement. I had 18000 RS in account but currently showing -24000…
How much quantity?
1 Like
If you shorted the position in Intraday with auto square off then you might be saved by some extent or else It’s probably gonna be Your quantity times the difference of the price you did short and the shares got brought at Auction due to short delivery plus penalties and other charges.
1 Like
230 at a price of 382
The broker will have to buy this for you in auction.
For the new T1 settlement system, this could be closing price on the day of short + 20 %.
20% here denoting the next upper circuit.
This trap once happened to me, but that time it was T2 settlement. The price I paid was ( closing price on the day of short + 20% ) + 20%
If the broker can find a cheaper seller, they would do that, But I think, the broker what they usually does is, they will transfer from their own demat and charge you 20%
I just remembered the name of that company, It was Dollar Industries. It was the listing day for that company and as soon as I short sold the shares, it hit upper circuit. The next day it was another Upper Circuit of 20%
Also, I took the decision I would never buy any of their products.
use options for shorting/long, loss is limited and no trap.
Hi Shubham, your intraday trade will be converted to delivery trade. If you have shares in your demat, they’ll be transferred to the exchange. If you don’t have the shares, it’ll lead to short delivery. We’ve explained this in detail here: What will happen to my intraday (MIS/CO) position in case the stock circuit limits are hit?
That is very sad to hear. Please take care of the upper circuit levels, guys, before shorting positions in intraday trades.