What is Periodic Call Auction?
Periodic call auctions are mechanisms specifically designed for trading illiquid stocks. These stocks typically experience low trading volumes, making their prices less influenced by regular supply and demand dynamics. Criteria for Illiquidity: ...
What steps does the exchange take if shares aren't procured during an auction?
If an auction doesn't result in the acquisition of the required shares, the exchange will ensure the buyer's obligation is settled in cash. The compensation amount is the higher of two values: the peak stock price from the day of the transaction to ...
What penalties does a seller face for short delivery of shares?
If a seller is unable to deliver the promised shares, they will be charged the difference between the auction's settlement price and their original selling price. Furthermore, an auction penalty of 0.05% per day is levied for each day the shares ...
What does short delivery mean and how does it impact me?
Short delivery is a situation in the stock market when a seller doesn't deliver the promised shares to the buyer within the stipulated time. This typically occurs when a seller mistakenly sells shares without possessing them or if a particular stock ...
What happens if my intraday equity short position isn't closed by end of day?
When you engage in intraday equity trading, it's crucial to understand the implications if short positions aren't squared off by the day's close. Understanding Short Delivery: In instances where your intraday equity short position remains unsquared ...