General Trading Chat

[XRAY27]

Factors to remember !!!

 

[XRAY27]

1) Parabolic breakout+Symmetrical triangle, 2) Bull flag, 3) Ascending triangle, 4) Failed descending triangle, 5) Rounded bottom, 6) Flat base, 7) Measured move.

Details

7 Common Breakout patterns

 

[Blackhole]

1) Parabolic breakout+Symmetrical triangle, 2) Bull flag, 3) Ascending triangle, 4) Failed descending triangle, 5) Rounded bottom, 6) Flat base, 7) Measured move.

Details

7 Common Breakout patterns

Xray! its a good site! :thumb:

 

[stock_trader84]

Hi,

I have few beginner doubts,

1. Can I take a equity share for delivery and sell it the next day itself.

2. Say if I have only Rs.1000 in account and I have entered a futures contract. If the market moves against my order and I am in loss & I have not put a stop-loss.
If the loss reaches Rs.1000 will the contract get closed and I lose my Rs.1000
OR
Will it go into negative like Rs.1200 and I have to close the contract by myself and pay -200 loss also.

Thanks in advance

 

[avshake]

1. Yes, you can

2. If you have just 1000 Rs in account - then you can't enter a Futures contract - you need to have a minimum margin (SPAN+Exposure) available for at least 1 contract. Still, going by your presumed 1000 Rs account - your broker will close out your contract at Market price and issue a margin call to you. So, your 1000 got wiped out and then you need to deposit the 'in-loss' amount + plus charges to your broker.

 

[stock_trader84]

1. Yes, you can

2. If you have just 1000 Rs in account - then you can't enter a Futures contract - you need to have a minimum margin (SPAN+Exposure) available for at least 1 contract. Still, going by your presumed 1000 Rs account - your broker will close out your contract at Market price and issue a margin call to you. So, your 1000 got wiped out and then you need to deposit the 'in-loss' amount + plus charges to your broker.

Regarding Margin Call, so you are saying if my loss is equal to the amount in my account, the broker will close my contract and i will have to pay brokerage+tax and also a few points loss since its closed at market price. Am I right ...

 

[deba72]

Hi,

I have few beginner doubts,

1. Cal I take a equity share for delivery and sell it the next day itself.

2. Say if I have only Rs.1000 in account and I have entered a futures contract. If the market moves against my order and I am in loss & I have not put a stop-loss.
If the loss reaches Rs.1000 will the contract get closed and I lose my Rs.1000
OR
Will it go into negative like Rs.1200 and I have to close the contract by myself and pay -200 loss also.

Thanks in advance

1. You can but you also need to be aware of the risk. In India we follow T+2 settlement system where T is the trading day. On T+1 , funds get debited from your account and on T+2, sometime around 2.00 - 3.00 P.M your demat account gets credited with the shares you bought.

Now if you are selling the shares in T+1 and in case on T+2, your demat is not credited with the shares you bought on T ( due to short delivery from exchange ), then you have a problem. In that case, you will not be able to deliver shares you sold on T+1 and that will attract charges and penalties.

Now there are few brokers, who help the customers caught in such a situation by meeting the delivery obligations from their pool account.

So its better to check with your broker if they offer any such support.

2. You can't get in any futures contract with Rs.1000/-... Check the contractwise margin requirement with NSE or your broker. Assuming, you have the required margin and you enter into a futures position, broker's RMS system would ensure that the position is auto-squared off before the entire margin is wiped out . And if their system fails and you run into a naked debit, then you have the legal obligation to pay the amount.

 

[vijkris]

1.

Now if you are selling the shares in T+1 and in case on T+2, your demat is not credited with the shares you bought on T ( due to short delivery from exchange ), then you have a problem. In that case, you will not be able to deliver shares you sold on T+1 and that will attract charges and penalties.

Now there are few brokers, who help the customers caught in such a situation by meeting the delivery obligations from their pool account.

whenever i bought shares it always got credited in demat a/c.
is short delivery a common phenomenon?

 

[deba72]

whenever i bought shares it always got credited in demat a/c.
is short delivery a common phenomenon?

You are lucky. Short delivery is not uncommon. Sometimes, people get partial or full short delivery. I had it many times. When I was running a sub-broking unit, I saw many of my clients facing this.

 

[niftygupshup]

You are lucky. Short delivery is not uncommon. Sometimes, people get partial or full short delivery. I had it many times. When I was running a sub-broking unit, I saw many of my clients facing this.

If I get a partial or full short delivery, who will be responsible for my loss. Do they compensate my loss.
Because, when I make a short delivery I have to pay difference in price and have to pay penalty as well.