A trader buys a stock or commodity future at ₹ 1000 * 100000 qty in Cover order/Bracket order intraday or leveraged positional trade and then the price falls to ₹5 due to panic situation and executed at that price even after placing the stop loss at 900.will the trader have to pay the remaining losses to the broker or to the exhange?or will they claim the assets of the trader?if he has no assets what will happen?
Trader will be liable but broker has to meet the remaining amount before end of the day.
if trader doesn’t able to settle such a ahuge amount what will happen?
I am not sure about that but I think broker will use everything possible legally to reduce the debt.
To exchange, Broker is liable.
To broker, you are liable.
If you got nothing, then broker can’t do anything, except you will be blocked from further Trading, I guess.
This question would not have arised if you had read all the T&C before signing the Application form of the broker you are trading with. Neverthless you can still read the same and you will get your answer.
If you are trading with Zerodha, then they must have sent you back the copy of dully filed form. I have received it back.
Alternatively, you can contact your broker for the same, they shall be able to assist you.
The leverage is 20 times but regardless of stop loss hit, when the loss comes to 85% the position will be squareoff automatically…