Ireda short sell

Zerodha
22

@nyadav.ait in my case Zerodha is not revising the prices. You are lucky that Dhan has done it for you.

23

@d_p from your experience if can suggest some way out
intraday sell stop loss i keep near to upper circuit when enter more than 15% stock
most of time works, i get exit just before locking of stock
sometime somebody drop 3-5% single 1 minute candle
in such cases i observe stop loss execution gets skipped and
stock gets locked then no way to get out.next day auction
next day your half money invested in stock will go mostly
as next day 10% is normal for such strong stock

any tip can give to handle this
had gone through huge loss’s many times due to this ?

thanks in advance

24

@ShubhS9 In case of Short selling and position remains open the same day, Is auction settlement mandatory for Zerodha? I mean is it optional for zerodha to go for auction or internally settle such position next day?

25

Good suggestion

26

@cvs This is a reminder of the importance of not placing blind trust in our brokers. Initially, Zerodha claimed my case went to auction, but now they assert they attempted to buy in the open market for settlement. Check the details here :Youtube - A new way of manipulation and Scams! - #34 by VenuMadhav

Screenshot 2024-01-18 at 8.51.01 PM
Screenshot 2024-01-18 at 8.51.01 PM1554×594 69.8 KB
. @amitb , @Hardeep @slow @Joe_Maxpayne @Lakshit @abhiwin123 @varun_10 @Ashwin_kumar1 @Chandrakant_Landge please check the thread. --------**** CONTINUE INVESTIGATING AND DON’T ACCEPT YOUR BROKER’S STATEMENTS BLINDLY. DEMAND EVIDENCE..****----

27

Thanks for sharing.
Definitely helps understand the auction process better. :slightly_smiling_face:

However, my point was that knowing this “exception handling” in case of a short-delivery,
does not / should not affect one’s decision-making when initially trying to short stocks.

How does this additional bit of information that you have unearthed,
affect your decision-making when attempting to short stocks? :thinking:
(genuinely curious as i am unable to see what difference it makes to one’s trading strategy)

PS: Agreed that more transparency/accountability is better.
But, isn’t it better to never take-up positions that require one to resort to such a short-delivery auction?
Is there any benefit / edge to be had by allowing this risk of having to resort to the auction to fulfil a short-delivery?

28

Query
How can one anticipate that a particular share on its ipo debut will hit upper circuit? Is this normal or something exceptional out of the blue event that a stock on listing hits upper circuit

I did not even apply for the ipo as i found that this company only invests in renewable source of energy. When there are pure commercial banks, my views did not allow me to invest in this company

In addition, this is a govt owned entity

Was there any company especially govt owned company on listing day get into upper circuit. IRCTC - I wonder if this had the sAme listing gain?

The point i am trying to say is this point should be a part of their risk analysis process.

Maybe i am wrong. Would be nice to get clarity

1 Like
29

I regret a poor decision, but that doesn’t absolve my broker from making an effort to minimize my losses. The situation was beyond my control, and Zerodha had control over the subsequent steps. Unfortunately, it appears that Zerodha did not provide assistance in my case.

30

Even I was wondering the same. Can it be investigated? Is there any way? Is there any role of brokers involved in such case? Who knows :thinking:

A friend of mine said with Groww these upper circuit situation never happens as they automatically close your position if share hits 16% a day and block intrady in such shares, helpful for novice users.

31

Hiding potentially risky actions from users behind a warning
with a “I know what i am doing, let me through” option.
This does sound like a nice option in the interest of the user.

I thought Zerodha’s nudge feature was the first to do this.
I wonder why that did not trigger in this situation to prevent one from shorting this risky stock that day. :thinking:

@d_p are you thinking that it might be better to enter such potentially risky trades using Groww,
as the potential downside is limited (relatively better than what happened with your Zerodha trade recenlty) ?
If yes, i think i can finally see the logic behind this.

However, what i am immediately wondering is,
whether Groww happened to be able to minimize clients’ losses this time,
and the next time it might be some other broker that manages to minimize clients’ losses
with their risk management frameworks and limits/thresholds proving to be better suited
to some other market scenarios.

2 Likes
32

I dont think any broker in the history of global mkts comes close to what Z has done in terms of awareness.

1 Like
33

@Chirag1 Do you not believe it is also the responsibility of a broker to minimize losses for their clients whenever feasible?

34

@cvs Having incurred such substantial losses, I lack the courage to engage in further trading, as I am on the verge of bankruptcy. My contention is that my broker Zerodha could have minimized my losses, and although there was a possibility, regrettably, it did not materialize in my situation.

1 Like
35

After so many messages on this topic it is sad that no one from zerodha has come out with a clear cut procedure detailing how these type of transactions are handled. Let Zerodha put this even in Varisity so that everyone knows exactly how the transactions flows. I have read few post from zerodha explaining the procedure which is countered by the user. All it takes is a phone call or a one to one meeting and explain the procedure followed. Once both the party is satisfied, it can be explained here for others as well.

2 Likes
36

I remember this happens with me previously. Since my loses are few thousands so I ignored but in case of @d_p Zerodha should take proper steps as loses are HUGE. it would be interesting to know how Zerodha is handling and helping now their users.

1 Like
37

Exactly, when the losses are so high, it is good for Zerodha to handhold and explain things. This is their forum and the user is their customer, so it makes it even more important that things are explained clearly and convincingly. I am sure Zerodha is following procedures which is set by SEBI or whoever sets such procedures and I am sure all brokers follow the same SOP.

2 Likes
38

I am just trying to summarize what has happened here with so many messages and in simple language

@d_p You short sell Ireda shares worth lakhs to make (let’s just say) easy money and it hit upper circuit.
Normally its the broker that should ideally square off your position by EOD in cash market but it didn’t happen, also one more reason of not enough sellers.
And next day it again hit Upper circuit and then it was auctioned and sold at the UC that day, just increasing your losses by 10-20% more. Somewhere there should have been a nudged or you should have kept SL, but you learn something everyday but hopefully your loss should be minimized, let us know if it gets resolved

I am happy with how zerodha had transformed the trading and the world around stock market but With Zerodha glitch history I have stopped trusting them blindly and stopped derivative trading for this reason on their platform.

39

@varun_10 Sure will let you know if we reach to some conclusion.

40

@raja_n i am looking for some resolution. Let’s see.

41

You don’t need to justify your decisions to anyone. Obviously one will learn from mistakes but it doesn’t give anyone the right to keep blabbering about them to you without actually resolving the issue. Gyaani Babas will come and they will keep smiling sarcastically without having any empathy. Ignore them.

1 Like