T+5 Credit Settlement

abp1970 · 1 T+5 Credit Settlement Thu Aug 04, 2011 1:24 pm

abp1970

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Dear Gurus

When we have faced force selling situations, is it worth to buy and sell (if credit available) from a highly moving stock on the day at at least on the same price??? But we lose the amount goes to broker... Sad

manula · 2 Re: T+5 Credit Settlement Thu Aug 04, 2011 2:05 pm

manula

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abp1970 wrote:Dear Gurus

When we have faced force selling situations, is it worth to buy and sell (if credit available) from a highly moving stock on the day at at least on the same price??? But we lose the amount goes to broker...

buying and selling on the same price (from a highly moving stock on the day at at least on the same price??? ) what the use Evil or Very Mad

duke · 3 Re: T+5 Credit Settlement Thu Aug 04, 2011 2:22 pm

duke

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abp1970, did anybody suggest you to do this?

abp1970 · 4 Re: T+5 Credit Settlement Thu Aug 04, 2011 2:34 pm

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No.. of course I just thought of it...

abra12 · 5 Re: T+5 Credit Settlement Thu Aug 04, 2011 3:25 pm

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If any Broker allow this we can see nothing illegal here theoretically.I guess all systems will clear settlements automatically on a queue as you pay or sold and we can update the settlement date with out a credit call using this method.
But I believe we cannot forget some other important factors as well.
Not only the broker fee but you have to pay the interest too for the late payment.Because it will take 3 days to settle the sold amount.Generally Force selling call comes to you on T+5 day ( 2 days after the settlement day).I believe you have to pay interest for 5 days for a single bought and sold in this method.
And you should have available credit equal to the cost of the bought price+broker fees+any loss due to price down.
My broker used to call me on T+5 day to settle any credit, and he add some interest for late payment daily after T+3.

rijayasooriya · 6 Re: T+5 Credit Settlement Thu Aug 04, 2011 4:47 pm

rijayasooriya

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manula wrote:

abp1970 wrote:Dear Gurus

When we have faced force selling situations, is it worth to buy and sell (if credit available) from a highly moving stock on the day at at least on the same price??? But we lose the amount goes to broker...

buying and selling on the same price (from a highly moving stock on the day at at least on the same price??? ) what the use

Another great innovative idea from a new comer.I feel to give a +rep. Laughing