If your Intraday short is at risk of becoming a short delivery, our Risk Management (RMS) team makes a best-effort attempt on the trade day to help you cover it. Importantly, this is a safety net, not a guarantee — covering the short is ultimately your responsibility.
What does the RMS team do?
On the trade day, on a best-effort basis, the team will:
- Try to contact you to place a stop-loss (SL) order to buy the shares back.
- Email you if they can't reach you.
- Once the stock is locked at its circuit, place a buy order on your behalf to try to cover the short.
Why isn't this a guarantee?
Even a stop-loss market order can't guarantee the short is covered. If the stock is at its upper circuit with no sellers, there's simply nothing to buy back at — so neither your order nor the RMS order can execute.
What should I do?
- Respond quickly if the RMS team reaches out, and place the stop-loss they suggest.
- Better still, square off the short yourself well before the close rather than relying on any end-of-day help.
- Remember: if the short isn't covered, it goes to auction and the cost is yours.
While the short is open, it also affects your available funds — see what happens to your funds and balance.