Settlements
How to avoid short delivery?
To avoid short delivery, one needs to be cautious and have a clear understanding of one's holdings and the market environment. Here's how you can steer clear of such situations: Verify Your Holdings: Before selling any shares, ensure that the exact ...
What does 'X' settlement or cash settlement mean in trading?
In trading, settlement refers to the process by which securities are transferred from the seller to the buyer. However, there are times when the delivery of these securities faces disruptions. Here's a look at how 'X' or Cash Settlement comes into ...
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 ...
What happens if my intraday F&O positions aren't closed by end of day?
Not square off open positions by the end of the day can lead to specific consequences. Here's what you need to know: Auto Square-off by RMS: If your intraday F&O positions remain open, our Risk Management System (RMS) will take action. For segments ...
What does T+2 settlement mean?
The 'T+2' settlement represents the timeline for completing a security transaction. Here’s a breakdown: T (Transaction Day): The day the trade takes place. T+2: Refers to the fact that the finalisation of the transaction – both payment and receipt of ...
What is rolling settlement?
The concept of "rolling settlement" is fundamental in trading. Here's a brief overview: A Continuous Process: In a rolling settlement system, each trading day stands as a unique trading cycle. Trades executed that day are settled based on the net ...
What is Trade for Trade (T for T) segment?
The T for T segment stands apart from the usual rolling settlement. Here's what sets it apart: Trade-to-Trade Basics: In the T for T segment, securities undergo a unique kind of settlement. Unlike the typical netting off seen in rolling settlements, ...
What is an auction?
When a seller doesn't provide the shares by the settlement day, an auction is initiated. The exchange undertakes this auction to source the shares from the open market, ensuring the buyer receives the shares they've purchased.
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 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 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 ...
Popular Articles
How long does it take to process a withdrawal request?
Upon placing a withdrawal request with FYERS, here's what you need to know: Same-day Processing: If you make a request between 5:30 AM and 5:00 PM, we process it on the same day. However, if you have open commodity positions/orders in the MCX ...
What are the latest features in FYERS Web?
The latest TradingView library has been integrated on the FYERS Web and the following are the feature updates. New Features: 1. Icons have been provided for Exit positions, Fund Transfer, Basket Order, My Account, User Settings, Refresh Trading ...
What is GTT? Can I place a GTT order in FYERS?
Good Till Trigger (GTT) is an order type where you can set a Target or Stop-Loss, remaining valid for up to one year from its placement. In essence, you determine a price to Buy or Sell a particular scrip, and this order remains active until that ...
Are there Annual Maintenance Charges (AMC) at FYERS?
No, FYERS does not impose any Annual Maintenance Charges (AMC). However, it's essential to note that clients who opened their accounts between 1st April 2020 and 4th June 2021 were subjected to AMC charges until 30th September.
What is the FYERS 30 Day Challenge, and why was it discontinued?
To encourage discipline among traders, we introduced FYERS 30 Day Challenge. Essentially, if you are in net profits for a period of 30 trading days, the brokerage charges incurred during the period will be refunded up to a limit of ₹10,000 per ...