suppose i have 10k in my trading account and I trade Toady With Cover Order that means 10,000 * 15 times leverage = 150,000 right ?
Suppose that there is system failure toady and my position not square off end of the day and exchange or broker traded that position as CNC Or Normal For next trading day So what happen next day with my account ?
obviously broker squre off my position at next day morning But now that position is CNC Or normal right? so what happen next…???
That’s mean my account balance go in negative and I have to pay Rs- 140,000 to the broker bcz past trading day I have position of 150,000 with only 10k…
@ad09 ; AS i understood your query : you have margin of rs 10,000 with broker and your purchase position of 1,50,000 created on say 21 January resulted in delivery for what so ever the reason. the position will be squared off by broker or you yourself on 22 January (BTST).
no issue, only the difference of loss or profit plus brokerage and expenses will be the financial obligation for you and this will be adjusted from the 10,000 you have. if loss and more than 10,000 you have to pay .
Every broker tries the best to ensure no tech issues, but then there is that risk in this business that every trader has to factor in. Hence important for a trader to never trade a position big enough to cause significant damage at any point of time.
Anyways, two scenarios
You are long or holding buy position
Next day morning the position gets squared off. If you are lucky you make money on the trade, if not you can lose.
You are holding short position
This is where it gets tricky. If you are holding a short position overnight, you are required to force deliver the shares. If you don’t have the shares, on T+3 an auction happens and it gets settled on that day at the auction price. So you end up holding position for almost 3 days without an option to exit.
You All are answerd all most each and every query of the client side… Thanks a lot mr.