Comment on TRADING HOLIDAYS 2014 - NSE, BSE & MCX
commented on
10 Feb 2014, 04:29 PM
Any good risk management mechanism will require positions with shortage of funds to be squared off for the greater good. If positions with shortage of funds are not closed immediately and the market continues to fall/rise, then the losses will begin to accumulate. This will put the investor, broker, and also the exchange, maybe even the country in trouble.
Yes, in this case your positions would’ve been squared off if you were making a loss. However, if you were making a profit you could hold onto your positions and make windfall profits.