Hi Alchemist & others,

I need some help from traders here. I shorted 4 shares of BPCL at 657 today and bought 2 shares of Axis Bank at 1340 for intraday. But I could not square off these positions due to my browser problem.

What is the best strategy to follow considering that there will be auction for short delivery after 2 (or 3 days)? Should I allow both positions to remain open till auction for BPCL is done with?

Thanks.

Ragav.

The auction will happen on T+3 day.

You should hold Axis Bank if you feel there is upside to the stock.

If you need the cash, sell Axis Bank.

On the charts, Axis Bank looks overbought in the short-term and so I think it is best to close your long position tomorrow.

Most probably, you will make a small loss in BPCL. If Axis Bank corrects, you will end up with losses in both scrips.

__________________
Read All Rules Before Making Any Post | E-Investing on Google+

Which broker is this, that allows to keep overnight open positions on both buy and sell transacions?

By default, the short transaction is open till the shares are bought in auction.

In my opinion, once the shares are bought during auction, the losses if any are booked and the short position is considered closed.

I asked because my broker (HDFC Sec), attempts to square-off intraday orders after 3:00 pm. So I don't have the liberty to keep open positions .

This means I don't have to bother about squaring-off my trades in case of some browser issue or broken internet connection.

If during square-off however, there turns out to be a short-delivery (either way), then that is a different problem.

My question was about the ability to keep open positions, which HDFC Sec doesn't allow.

KotaK Securities allows open positions till end of the day. All open positions are automatically marked for delivery.

Many years back, I had an account with India Infoline (5Paisa).

At that time, India Infoline did allow open positions till end of trading. I am not sure if they still do.

__________________
Read All Rules Before Making Any Post | E-Investing on Google+

India Infoline (at least in its browser version) does not have a concept of Intraday. You can short or buy depending on your margin. If you cover your position it goes into intraday otherwise it goes in delivery or auction depending on the transaction.

"At that time, India Infoline did allow open positions till end of trading. I am not sure if they still do."

They still allow open positions till end of trading hours. What is the reason for other brokers not allowing the same if enough margin is present in the account?

The short position (4 shares of BPCL) was covered by my broker today. But the price at which the shares were bought as mentioned in the contract note was higher than the day's high today. Is this normal for all auctions?

Almost all auctions happen at a price that is higher than the market price.

The difference between the auction price and the market price depends on the liquidity of the stock and the auction quantity for the day.

If it is an illiquid stock, the auction rate may be significantly higher than the market price (5%, 7% or even higher).

On certain days, the number of shares to be bought in an auction is very large and in such cases, the auction rate may be significantly higher than the market price.

__________________
Read All Rules Before Making Any Post | E-Investing on Google+