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I’ve been via different questions the place deliverable quantity has been defined with examples. Nevertheless, I’ve sure questions.
When the NSE says that ‘deliverable quantity’ is ‘gross throughout consumer stage’, and BSE additionally makes use of the phrase ‘gross deliverables’, my queries are:
Who’s the ‘consumer’ right here? Does the phrase consumer right here discuss with particular person small dealer or does it discuss with the Buying and selling Member(Dealer)? I do understand that Buying and selling Members/Brokers are the true shoppers of the exchanges, and particular person small merchants are shoppers of these shoppers.
As an illustration: If dealer named A, as an strange small dealer purchase(with intention of taking supply, and never intraday) 100 shares of Reliance utilizing Zerodha as buying and selling member, and one other small dealer named B sells 100 shares(with intention to ship, and never intraday) utilizing the identical Zerodha [BUT A and B are not counterparties to each others trade, A has traded with X; And B has traded with Y; where X and Y and small individual traders using another Trading Member or Broker], then will this Gross deliverable quantity determine for Zerodha be 200 or 100 or 0?
Why it’s ‘gross’? Shouldn’t it have been ‘Web’? Whether it is actually on the stage of inividual consumer/consumer PAN(versus buying and selling member code/PAN), then the phrase ‘web deliverable’ is extra acceptable than ‘gross deliverable’.
NSE says ‘gross throughout consumer stage’ within the intraday Commerce Info web page, however no point out of gross or web within the price-volume information which is made obtainable EOD on its web site. However BSE does use the phrase ‘Gross’ even at EOD. My query to that is that why nonetheless use the phrase Gross at EOD? At EOD, web phrase is extra acceptable.
So lastly, the principle query is – throughout whose ranges is the deliverable quantity calculated?
The idea of deliverable quantity in inventory exchanges like NSE (Nationwide Inventory Change of India) and BSE (Bombay Inventory Change) could be a bit intricate, however I’ll deal with your questions intimately to make clear.
1. Who’s the ‘consumer’?
On this context, the time period “consumer” refers back to the end-user or particular person dealer/investor who’s buying and selling on the change via a dealer. Whereas brokers (Buying and selling Members) are the direct shoppers of the change, the “consumer stage” information pertains to the people or entities buying and selling via these brokers.
2. Instance Situation with Merchants A and B
Let’s break down the state of affairs with Dealer A and Dealer B:
Dealer A buys 100 shares of Reliance with the intention of taking supply via Zerodha.
Dealer B sells 100 shares of Reliance with the intention of delivering via Zerodha.
A isn’t buying and selling instantly with B (i.e., they’ve totally different counterparties).
Now, relating to the calculation of deliverable quantity for Zerodha:
Deliverable Quantity: This refers back to the complete variety of shares which can be supposed to be delivered, versus these traded intraday.
Since each A and B are aspiring to take and provides supply respectively, Zerodha’s gross deliverable quantity can be 200 shares (100 shares purchased by A + 100 shares offered by B).
3. Why ‘gross’ and never ‘web’?
The time period “gross” is used as a result of the exchanges are summing up the full supposed deliveries with out offsetting purchases and gross sales:
Gross Deliverable Quantity: That is the full variety of shares purchased for supply plus the full variety of shares offered for supply. It doesn’t web off the buys towards the sells.
Web Deliverable Quantity: This is able to suggest offsetting buys towards sells, which isn’t what the exchanges report.
The rationale for utilizing “gross” is to supply a whole image of market exercise when it comes to supply intentions, displaying the full quantity of shares supposed to be transferred.
4. Why use ‘gross’ at EOD?
The usage of “gross” even on the finish of the day (EOD) is in step with the intent to report the full quantity of shares supposed for supply. It displays the complete extent of buying and selling exercise involving deliveries with out netting off the transactions:
Gross Deliverable Quantity at EOD: Signifies the full shares purchased and offered for supply functions through the buying and selling day.
The main target is on transparency and offering detailed data on supply intentions.
5. Throughout whose ranges is the deliverable quantity calculated?
Deliverable quantity is calculated throughout particular person shoppers (finish merchants/traders) however aggregated on the dealer stage for reporting functions. Right here’s the way it works:
Particular person Degree: Every commerce’s supply intention is recorded on the consumer (finish dealer/investor) stage.
Dealer Degree: The deliverable volumes of all shoppers of a specific dealer are summed as much as present the dealer’s complete gross deliverable quantity.
In abstract, the deliverable quantity is calculated on the particular person dealer/investor stage, aggregated and reported on the dealer stage. The time period “gross” is used to point the full quantity of shares supposed for supply with out netting off buys and sells.
Disclaimer:This data is absolutely given by ChatGPT-4 (OpenAI).
Has the above reply been absolutely typed by Chat GPT/AI?
dtyxg:
Disclaimer:This data is absolutely given by ChatGPT-4 (OpenAI).
Sure ; I’ve talked about it EXPLICITLY
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