Yes. A short delivery usually comes from an uncovered Intraday short — but it can also happen through no fault of your own, because it depends on the exchange delivering shares up the chain. So it's worth staying vigilant around settlement.
How can that happen?
Here's a common example:
- On T day, you buy a stock.
- On T+1, our system lets you sell it — as it should, since the stock is expected in your account.
- But the exchange didn't deliver the full quantity to you on T+1. Effectively, your T+1 sell is now short.
- If the exchange still delivers those shares, all is well and your sale settles normally.
- But if the exchange had to close out your original buy — settle it in cash instead of shares — your sell stays short, and it goes to auction the next day.
In other words, a settlement failure further up the chain — not anything you did wrong — can leave your sale short.
What should I watch for?
- Keep an eye on your holdings and ledger around settlement, especially if you sell soon after buying.
- If a stock you bought hasn't fully settled into your account, be cautious about selling that quantity right away.