Avoid auction of your stock if you want to avoid the loss

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 Auction

Avoid auction of your stock if you want to avoid the loss

Auction is the process in which the stock exchange auctions the stock holding of an investor when he or she had sold the stock but can not deliver the stock within a stipulated time. The process is kind of a penalty for a stock market investor as apart from the price of the stock the stock exchange also slaps a fee for he auction which is not a small amount at all. So, it is always advisable that you take all the necessary measures to avoid the auction of your stock. In most cases the auction happens due to the carelessness of the investor. So, it is necessary that you take your buying and selling decisions meticulously and with apt care so that you can effectively avoid a drastic step like auction.

Online trading is a great way to avoid auction. As you make all your stock market deals yourself without depending on your broker and through the transparent online trading process, it is easier for you to keep track of the stocks you hold and your buying and selling of the shares. With online trading portals you can see your current portfolio whenever you log in to your account and take the decisions all by yourself. It is therefore an effective way to manage your stock market investments and avoid auction of your stocks after you sell them.

There may be some unavoidable situations though that might arise from the day trading. For example when you have sold a particular stock and then even before the market closes the buying of the particular stock is freeze for some reason. Of course if you have a good analysis of the market it is a rarest possibility and you can always avoid auction if you are equipped with proper information.

From a buyer’s point of view auction is an effective process that safeguards his or her dues. In fact auction of the stock is done to provide the buyers with the stocks that they have purchased from a seller.

 

 

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