How does the Offer for Sale (OFS) mechanism work?

How does the Offer for Sale (OFS) mechanism work?

The Offer for Sale (OFS) mechanism at FYERS follows a standardised process used across platforms, ensuring that all actions are completed on the same day. Here’s a step-by-step explanation:

  1. Allotment Confirmation: The exchange confirms your OFS allotment based on your bid.

  2. Margin Blocking: Once you place a bid, the required margin amount is blocked in your trading account.

  3. Reverse Entry and Actual Debit: After the allotment is confirmed by the exchange:

    • The blocked margin is reversed.
    • The actual amount for the allotted OFS is debited from your account.

Illustration from the Ledger Screenshot:

  • Red Section: Shows the reversal of the blocked margin and the subsequent debit for the OFS transaction.
  • Green Section: Highlights the final transaction entry for the OFS allotment.

Key Point: The entire process, including margin blocking, reversal, allotment confirmation, and actual debit, is completed on the same day, subject to exchange confirmation. This mechanism is consistent across trading platforms.


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