More info about auction trade?

Question

Please tell me about auction trade, i don't know any thing about it .

i short sold HDFC 20 shares yesterday ,i received mail from broking house that "trade going into an auction."

So please guide me !

Am done some thing wrong?

(today i brought 20 Shares of HDFC .)

Thanks To All Honorable members & Answerers!

Answer 1

If you sell some share without having the share in your demat account, you have to square up the position by purchasing the share on the same trading session otherwise your broker will buy it on auction and you have to make up the loss. So, in future be cautious before short selling.

Answer 2

DONT worry dear , ask to yor boker when 'll thae auction will happened  onthe day exactly to auction you observe the trnd of share on the same day & closing of rate. it'll depends on mkt mood if it'll hike u'll  have to pay more if price'll down u've to pay less or may b possible  u dont have to pay anything

Answer 3

nothing to be worried of, its just that you will lose some money, like say 2 to 5 percent, as in auction you will have to buy them a little above market price,and else you can do one thing, tell your broker to settle it from his account and you can pay him whatever you guys agree on.