loss on forced selling by broker

pushpakumara · 21 Re: loss on forced selling by broker Sat Aug 27, 2011 2:34 pm

pushpakumara

Senior Manager - Equity Analytics

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Join date : 2011-04-13

Yes broker has the option of force selling if the dues are not settled within the stipulated time period. You can not do much about it unless he has done it before the stipulated period for force selling.

Investor99 · 22 Re: loss on forced selling by broker Sat Aug 27, 2011 3:24 pm

Investor99

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@StocksWatch wrote:

@Antonym wrote:

@mcqueen wrote: my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

@mcqueen: Sorry for being unusually harsh, but...
I have no sympathy for people who buy shares but do not pay for them. Such individuals are the root cause of the force selling problem. Coming here and behaving like a victim does not alter the fact that you had defaulted.
Please live within your means and pay for whatever you buy, as a responsible citizen should. By doing so, you will also be helping the rest of the investing community.

I am affraid but I am also inclined to agree with Antonym on this. It is your fault that you didn't pay the outstanding monies. Also you claim to have few other shares where you are making profit. Why didn't you sell those to settle your credit at the first place without giving an opportunity for the broker to select the share on your behalf?

I agree too. Everyone has to learn to live within their mean. But unfortunately greed takes over and then come the down fall and it gives rise to the blame game. Earlier everyone was blaming the SEC now they are blaming the brokers what a joke.

ha_na · 23 Re: loss on forced selling by broker Sat Aug 27, 2011 7:06 pm

ha_na

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@Antonym wrote:

@mcqueen wrote: my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

@mcqueen: Sorry for being unusually harsh, but...
I have no sympathy for people who buy shares but do not pay for them. Such individuals are the root cause of the force selling problem. Coming here and behaving like a victim does not alter the fact that you had defaulted.
Please live within your means and pay for whatever you buy, as a responsible citizen should. By doing so, you will also be helping the rest of the investing community.

Antonym

you are correctly said.

we have to live with our means and power word for traders should be "enough"

Fresher · 24 Re: loss on forced selling by broker Sat Aug 27, 2011 7:39 pm

Fresher

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Join date : 2011-02-04

I haven't been in this situation but for me the right thing to do is to sell the shares bought for credit. ie - after your cash has been used to buy, what is bought after that.

If it was me, I wouldn't want the broker to sell some of my long term shares even though they show some profit in the pf. of course there can be exceptions and this is my view.

Roboticfx · 25 Re: loss on forced selling by broker Sat Aug 27, 2011 8:19 pm

Roboticfx

Senior Vice President - Equity Analytics

Posts : 1858
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dear mcqueen,
It is better to change your broker.(It is asha phillips Isn't it?) Difficult to find good advisers at asha phillips and you can't select an adviser by yourself because you don't know who is good. You can choose captial trust. More better if you can use the online trading system as you can do trades independently. Smile

thighrokker · 26 Re: loss on forced selling by broker Sun Aug 28, 2011 6:12 am

thighrokker

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@StocksWatch wrote:

@Antonym wrote:

@mcqueen wrote: my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

@mcqueen: Sorry for being unusually harsh, but...
I have no sympathy for people who buy shares but do not pay for them. Such individuals are the root cause of the force selling problem. Coming here and behaving like a victim does not alter the fact that you had defaulted.
Please live within your means and pay for whatever you buy, as a responsible citizen should. By doing so, you will also be helping the rest of the investing community.

I am affraid but I am also inclined to agree with Antonym on this. It is your fault that you didn't pay the outstanding monies. Also you claim to have few other shares where you are making profit. Why didn't you sell those to settle your credit at the first place without giving an opportunity for the broker to select the share on your behalf?

Let me disagree...And ask you this
"What business runs without credit?"
In finance, the concept of credit is fundamental.
Also let me cite another example : I like to own a Ferrari. Now with my current salary and savings i might just be able to save for the next 50 years ( i will be 80 then) and buy the Ferrari for cash.
Or i can take a loan ( KNOWING the repayment terms and conditions) and buy the car now.
Wink

My ability to manage the "benefits" that come with a Ferrari at 30 would be much better than at 80
Wink

** The important point is to KNOW the repayment terms and conditions, when going for credit **
When a Broker says "Dude, pay before noon" THAT is does not qualify as "knowing the repayment terms in advance"

While we all agree that we must always pay for what we take, what i am against is about the ad-hoc changes of the rules to play by.

Disclosure : I do not own a Ferrari
Wink

Fresher · 27 Re: loss on forced selling by broker Sun Aug 28, 2011 8:13 am

Fresher

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@thighrokker wrote:

@StocksWatch wrote:

@Antonym wrote:

@mcqueen wrote: my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

@mcqueen: Sorry for being unusually harsh, but...
I have no sympathy for people who buy shares but do not pay for them. Such individuals are the root cause of the force selling problem. Coming here and behaving like a victim does not alter the fact that you had defaulted.
Please live within your means and pay for whatever you buy, as a responsible citizen should. By doing so, you will also be helping the rest of the investing community.

I am affraid but I am also inclined to agree with Antonym on this. It is your fault that you didn't pay the outstanding monies. Also you claim to have few other shares where you are making profit. Why didn't you sell those to settle your credit at the first place without giving an opportunity for the broker to select the share on your behalf?

Let me disagree...And ask you this
"What business runs without credit?"
In finance, the concept of credit is fundamental.
Also let me cite another example : I like to own a Ferrari. Now with my current salary and savings i might just be able to save for the next 50 years ( i will be 80 then) and buy the Ferrari for cash.
Or i can take a loan ( KNOWING the repayment terms and conditions) and buy the car now.

My ability to manage the "benefits" that come with a Ferrari at 30 would be much better than at 80

** The important point is to KNOW the repayment terms and conditions, when going for credit **
When a Broker says "Dude, pay before noon" THAT is does not qualify as "knowing the repayment terms in advance"

While we all agree that we must always pay for what we take, what i am against is about the ad-hoc changes of the rules to play by.

Disclosure : I do not own a Ferrari

let me disagree partly.

one should know not only the repayment terms but should also know his repayment ability. If you think something is going to go up tomorrow or 3 days then buy on credit. If you think it will go up in quarters to come, simply get a margin trading account for which you will get a less interest and explicit repayment terms.

coming back to the point, I do not think the person who posted the question has any arrangement or communication with the broker. In such a case, how can he/she know the terms even. Not all brokers allow credit for a long time. They are well within their right to sell if not paid for.

Businesses run on credit. I agree. They take out loans, from banks.
For trade credit, it is not an indefinite period. you ought to pay within a stipulated time. If you keep delaying that you tend to lose the business with the suppliers

rijayasooriya · 28 Re: loss on forced selling by broker Sun Aug 28, 2011 8:21 am

rijayasooriya

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@thighrokker wrote:

@StocksWatch wrote:

@Antonym wrote:

@mcqueen wrote: my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

@mcqueen: Sorry for being unusually harsh, but...
I have no sympathy for people who buy shares but do not pay for them. Such individuals are the root cause of the force selling problem. Coming here and behaving like a victim does not alter the fact that you had defaulted.
Please live within your means and pay for whatever you buy, as a responsible citizen should. By doing so, you will also be helping the rest of the investing community.

I am affraid but I am also inclined to agree with Antonym on this. It is your fault that you didn't pay the outstanding monies. Also you claim to have few other shares where you are making profit. Why didn't you sell those to settle your credit at the first place without giving an opportunity for the broker to select the share on your behalf?

Let me disagree...And ask you this
"What business runs without credit?"
In finance, the concept of credit is fundamental.
Also let me cite another example : I like to own a Ferrari. Now with my current salary and savings i might just be able to save for the next 50 years ( i will be 80 then) and buy the Ferrari for cash.
Or i can take a loan ( KNOWING the repayment terms and conditions) and buy the car now.

My ability to manage the "benefits" that come with a Ferrari at 30 would be much better than at 80

** The important point is to KNOW the repayment terms and conditions, when going for credit **
When a Broker says "Dude, pay before noon" THAT is does not qualify as "knowing the repayment terms in advance"

While we all agree that we must always pay for what we take, what i am against is about the ad-hoc changes of the rules to play by.

Disclosure : I do not own a Ferrari

I can not see significant disagreement here.No one here says do not get credit or do not settle the credit on due date.

banarahu · 29 Re: loss on forced selling by broker Sun Aug 28, 2011 8:45 pm

banarahu

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@mcqueen wrote: my broker has sold my SFIN which i have bought long ago, to recover my outstanding,at 30,yesterday with a loss. today it went up to 40.but they didnt choose shars i gain little profit for force selling.because of that i loss morethan 8000.How they select shares for force selling.I have a dout why they select sfin only.please advise me ::

sorry friend... brokers don't care about you or your money. They cover their your outstanding credits by easiest way. They don't want to find what price you bought, only check the amount they want to cover and sell easily at once. That may be bulk of same share or different shares...

This is my personal thinking,
If you have outstanding credits and You seriously want to hold,
Then ask from broker and clear the credits by selling another or
sell one and buy again at that price or lower price. Then Your lost is only broker charge and you can hold it for some days...

But Rules changed now, best option is change your broker and go for a one who gives best facilities for their customers... Smile

Aamiable · 30 Re: loss on forced selling by broker Sun Aug 28, 2011 9:36 pm

Aamiable

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Anyway broker firms have to send reports at the end of the month. ......Monday and Tuesday can be uncertain. ....Thursday onwards market could perform well. Smile

Aamiable · 31 Re: loss on forced selling by broker Sun Aug 28, 2011 9:59 pm

Aamiable

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@StocksWatch wrote:

@Aamiable wrote:For investments oriented stocks there is no issue of force selling. .....Only for the credit inflated stocks force selling comes in to operation...... Investors are reluctant to put funds in to such risky stocks.

What the heck are you trying to say here? What makes this different when it comes to forced selling, whoever who is doing forced selling is expected to select the stock having least unrealized loss if there are no stocks making profits in the PF!

It is easy to understand that speculative stocks have large quantities of credit to clear……. as the collectors have selected speculative stocks expecting a rapid increase in prices mostly on credit, .....in other words speculative stocks are credit stocks... fake stocks ….without having funds expecting to exit within 5 days. ……Those stocks could be subjected to force selling and prices dropped sharply. Where as investment oriented stocks do not have many share holders who collect them on credit as they do not expect a short term gain and they have to settle them to hold on for several months. nocredit to clear on those shares ... and there is not much of force selling.....

When it comes to force selling investment oriented medium term stocks survive and the speculative counters suffer. …….That is the main reason why rallies and so-called runs were ineffective during recent months…… that kind of manipulated stocks are on credit where as investment oriented stocks are not so depended on credit. Credit bubble is on speculative stocks……

When it comes to force selling speculative counters are badly affected…….I use to avoid such counters.....
Smile

and now ...it is the month end..... Exclamation

Aamiable · 32 Re: loss on forced selling by broker Sun Aug 28, 2011 10:17 pm

Aamiable

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Investors can easily differentiate between good stocks and bad stocks. Fake shares and real shares. .... credit stocks and real stocks....There are two main kinds of stocks.....Easy to understand…..

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loss on forced selling by broker

21 Re: loss on forced selling by broker Sat Aug 27, 2011 2:34 pm

pushpakumara

22 Re: loss on forced selling by broker Sat Aug 27, 2011 3:24 pm

Investor99

23 Re: loss on forced selling by broker Sat Aug 27, 2011 7:06 pm

ha_na

24 Re: loss on forced selling by broker Sat Aug 27, 2011 7:39 pm

Fresher

25 Re: loss on forced selling by broker Sat Aug 27, 2011 8:19 pm

Roboticfx

26 Re: loss on forced selling by broker Sun Aug 28, 2011 6:12 am

thighrokker

27 Re: loss on forced selling by broker Sun Aug 28, 2011 8:13 am

Fresher

28 Re: loss on forced selling by broker Sun Aug 28, 2011 8:21 am

rijayasooriya

29 Re: loss on forced selling by broker Sun Aug 28, 2011 8:45 pm

banarahu

30 Re: loss on forced selling by broker Sun Aug 28, 2011 9:36 pm

Aamiable

31 Re: loss on forced selling by broker Sun Aug 28, 2011 9:59 pm

Aamiable

32 Re: loss on forced selling by broker Sun Aug 28, 2011 10:17 pm

Aamiable

33 Re: loss on forced selling by broker

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