hi all ,
What is mean " short delivery " ? How is it affecting BTST trade?
Can you any one explain ?
hi all ,
What is mean " short delivery " ? How is it affecting BTST trade?
Can you any one explain ?
Check this post
https://zerodha.com/z-connect/queries/stock-and-fo-queries/btstatst-buyacquire-today-sell-tomorrow
Do delivery issues occur if I sell stock on T+2 day?
Any BTST ,t 2 sale carry rare risk that the selling broker (of your purchase) failed to deliver the shares . it is rare risk and i never faced such issue of auction /square off when i did even in t2t group shares.
The Settlement for Equity Delivery takes place on T+2 basis. It means the shares bought on “T” or Trading day (e.g. Monday) are to be received by the Buyer on T+2 day (i.e. Wednesday).
Similarly the shares sold on “T” (e.g. Monday) are to be delivered to the exchange by the seller on T+2 (Wednesday) to get the proceeds (cash) from the sale.
The failure of the seller to deliver the shares to the buyer on T+2 as obligated is called Short Delivery.
Generally speaking, short delivery means that the stocks will be delivered to your account usually two working days after you made a purchase. It is not so common, but in some countries might be that for some stocks there is such delivery option
The dangers of short delivery are explained in this video: