Impact on Profit & Loss (P&L):
Price Volatility:
Auction Price: The price determined during an auction can be significantly
different from the market price, impacting your P&L. If the auction price
is higher or lower than expected, it can lead to unexpected gains or losses.
Penalty Charges:
Seller Default: If you fail to deliver shares sold, penalties may apply,
directly impacting your P&L. These penalties can include additional costs
or fees imposed by the exchange.
Delayed Realization of Gains:
Timing of Funds: Funds from sold shares in an auction may be credited later
than in normal market transactions, delaying the realisation of gains and
affecting cash flow.