I think you are missing the point here. The RMS team mainly tries to square off lesser positions to help the customer. Most of the complaints we get from customers are Why did you square off more than required. And, like I said, most customers usually have multiple F&O positions, and it is hard for folks to easily figure out how much should be squared off to get to the appropriate margin levels. This problem never happens in equity intraday trades as the margin is fixed per scrip unlike SPAN for F&O.
@MohammedFaisal had a good suggestion, though. Maybe we will not charge incremental call & trade charges during the day if RMS squares off positions in chunks.
Not charging additional call and trade charges is an easy thing to do for us in the backend. It won’t be easy to exempt brokerage on additional orders.
I see many influencers show their profits by themselves which is great but they only show big profits and they say if i can do it you can also do it which I feel won’t be true in case of trading, as its a zero sum game (minus brokerages/taxes/fees etc)
I don’t know if zerodha can pull a stat to falsify such claims as well. For eg - how many people joined using
a referral link from some influencers and how many are having profits, how many stopped trading after trying for x months, total money they lost, average money they lost etc I assume these stats will be more horrified than overall stat that you shared a while ago.
Sometimes, Console is picking indicative NAV (iNAV) prices for ETFs which is a problem we’re trying to fix. However, when calculating collateral value, we use the actual closing prices as clarified here.
@abcd5662 those spikes you see are for Sundays/trading holidays when the contract values for Long-Short options are missing. Seems like this issue came up recently, we’re fixing it.
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@nithin in my short delivery case I got a response from Zerodha that RMS tried to buy shares on T+1 day on my behalf but it hits upper circuit so not able to however the shares was trading till 3:04 pm. Can I expect a detailed information in my case as nobody is responding?
Hmm… buying on T+1 day isn’t of any use if there is a short delivery.
For example if on T day you shorted something and it hit the upper circuit, you will default on the shares that you have to deliver on T+1 day (Settlement has to happen on T+1). If you default on T+1, you are taken to auction on T+2. Even if you bought on T+1, it is of no use as you would still default on T+1 day as what you buy on T+1 reaches your demat only on T+2.
Can you share your ticket number, will get @ShubhS9 to check on the response. If you default to deliver on T+1 due to a stock is stuck in upper circuit and you are short, you will be forced to go to auction, no other way around it. Unless of course, you can transfer shares from somewhere outside on T+1 before settlement.
@nithin thank you sir for your response, i have already shared details previously regarding this with @ShubhS9 ( #20231213886330).
This is the response from Zerodha " On the said day, the client placed multiple orders in the disputed scrip and held a short position for 102001 quantities at an average price of Rs.83.34 The client did try to exit the position, but the stock had breached the upper circuit limit. The auto square-off order was placed from our end at 3:20 PM and remained open in the system till the market closed and was eventually cancelled by the exchange. Order book was produced in our previous response. On 12th of December 2023, our RMS team did tried to buy the shares from the market, however the said script hit the upper circuit twice on 12th of December 2023. The RMS ream was not able to purchase the share. Hence, the settlement of these happens based on the close-out process laid down by the exchange which is the highest price of the stock from the date of selling to the auction day or 20% above the closing price on the auction day. As such 102001 shares of IREDA were settled at an average price of Rs.122.22."
Sir shares of IREDA was trading till 3:04 and if RMS bought it on highest price of 102 my losses could be half (~20 Lakh).
I guess what our team was referring to the auction market which is held on T+1 and not the normal market. On the auction market which is open between 2pm to 2.30 pm whatever could have been bought was bought and the rest was closed out. Will get someone to reach out and have a word with you and explain this better. It is unfortunate that this happened, but this is the risk of taking large short intraday positions in equity, especially non F&O stock which can hit circuit.
We had shared this post sometime back on Auction markets
@nithin sir, Share will go for auction on T+2 i.e 13 Dec and only Exchange can do that as per my understanding. Zerodha RMS can place order on my behalf and close my position on 12 dec or allow me to close myself which can help me to minimize my losses but nothing happens even after i called on 12 dec morning. If there was any possibility which can save me, Zerodha should help me with, i would appreciate that.
Was it mandatory to buy all my short position share in auction market? can’t it be considered as internal shortage if me as a seller and someone who buy was the client of Zerodha? Also can you please confirm that same settlement has been done for all other users who has Short sell IREDA on 11 dec?
Shares short sold on 12th, will need to be delivered on 13th morning. So your “buying” on 13th would have no affect since the short delivery would have happened for your transaction of 12th. To cover, we attempted to buy shares, but weren’t able to buy the entire short quantity, thereby resulting in a close out.
