What happens if I take a long/short intraday (MIS) position in a stock and it hits the 20%or 10% upper or lower circuit during the day? Since there are usually no sellers at the upper circuit, how does Upstox handle such positions at square-off time (around 3:12 PM)? Will it be converted to delivery automatically, or closed by the broker later?
Hi @NIRAV_21780358,
If a stock hits the upper or lower circuit, the intraday (MIS) position gets converted to a delivery trade at the exchange level since it can’t be squared off.
In case of an upper circuit (short position), if you’ve shorted the stock and it hits the upper circuit, there may be no sellers available to buy back the shares. The position will convert to delivery and if you fail to deliver the shares by settlement, the exchange will conduct an auction and any auction difference or penalty will have to be borne by you.
In case of a lower circuit (long position), if you’re holding a long position and the stock hits the lower circuit, it again converts to delivery. You’ll need to maintain sufficient funds in your account to take delivery. If there’s a debit or shortfall, the RMS team may square off the shares once trading resumes or funds aren’t provided. Hope this clears it up.
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