Can I Short Sell in Delivery Trading?
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Can I Buy in Delivery and Sell in Intraday
Before I get into details of delivery & Intraday trading, you must understand the nature of trade that goes into.
In intraday, you will have to buy and sell the stock on the same day. For some reason, your preoccupation with other activity can make you ignore the selling before 03:15 pm then the risk management team shall square off the position automatically.
In case you forget to square off the product (stock) then you will be fined INR 20.00 at the time of stock market closure.
Important Note:
In case of intraday, you can prefer margin from your stock broker in which you need not make a complete payment while purchasing a stock ( option buy) a portion of the stock shall receive leverage from your stock broker.
Delivery trading is a different ball game, once you buy a stock you are free to wait for days, or months, or years, the choice to make your selling goes in accordance to your willingness.
Important Note:
In case of delivery trading, you will have to make complete payment of the stock you are preferring to purchase and hence a greater portion of the money gets blocked in your delivery.
The payment for stocks involve cash and carry and the stock brokers do not entertain any leverage on, hence cannot receive margin support.
Now, your question is, can I convert my delivery shares into intraday shares and square off by the close of day’s stock market operations. You can do so.
Usually, you may opt for it when you find it essential for liquid funds. While converting into intraday, a portion of the bought share value will be credited to your trading account and the intraday stocks then will receive margin from your stock broker.
You can also prefer to convert when you realize that the delivery can create a loss to profit rather than.
Important Note:
On converting the delivery stocks to intraday stocks, you will find that there will be an alteration in the stock positions relatively. You will have to bear such losses though come out to be of little expense.