How to convert the intraday MIS position to delivery in Zerodha?
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How to Convert Intraday to Overnight
Do your commitments keep you away from stock trading during the trading hours? Even so, you need not bother about it, take the alternative ways that enable you to participate in the stock trades.
Yes, plan your trades outside the regular trading hours that are technically termed as after-market orders to make profit by investing into different security/asset segments of stocks.
The security/asset segments are equity stocks, equity derivatives, currency stocks, commodity stocks and so on.
In the below stated lines, you will get a brief:
Introduction of the overnight trading,
Procedure to book after-market-order overnight.
Overnight trading hours @NSE/BSE.
Benefits overnight trading.
Limitations of overnight trading.
Introduction of the Overnight Trading:
Overnight Trading’, is a period, where you can make a purchase of assets, or securities after the closure of the regular trading hours every day.
SEBI provides assurance to investors for the performance of overnight trading and you can trade stocks after the markets close, it begins from 03:40 pm and the night trading session is kept open till the next morning 08:59 am.
Procedure to Book after-market-order Overnight:
Till now, I have been saying that you can trade overnight if you are unable to participate in the daytime trading but here is another section of the investor community who take the advantage of Overnight trading.
They are regular traders who relook at the night trading sessions, here is the scenario, to justify it.
You may sense that there is likelihood of a positive trend in the stock prices in the next day’s session.
Incidentally, you may be unavailable to attend the regular trading sessions by 09:00 am then the best way is to sell the stocks you intend to, by placing after market order of open put.
Then, your AMO ( sell order) gets executed after the opening of the following day’s trading session.
Overnight trading hours @NSE/BSE
The entire stocking trading of India is contained at NSE ( New Delhi) & BSE (Mumbai). At both places, you can find equity trading, futures and options are performed and they adopt different trade timings.
For Equity Trading at BSE, the overnight trading hours begin at 03:45 pm and end by 08:59 am of the next day. While the overnight trading at NSE, begins at 03:45 pm and ends by 08:58 am of the next day.
For currency trading, the overnight trading hours are between 03:45 pm and 08:59 am of the next day at NSE/BSE.
10.For Futures and options ( F&O), the overnight trading hours begin at 03:45 pm and end by 9:10 am of the next day.
11.Benefits of Overnight Trading:
You can analyse the market dynamics through the day and react accordingly to informed decisions.
An overnight trade can enable you to make a profit by an increase in the stock price on the following day’s opening sessions of the markets.
The stock exchange provides an opportunity to modify/cancel your bought overnight order.
Limitations of Overnight Trading:
The overnight trading rules disallow the stop-loss order which is applicable in regular hour trading otherwise.
After market order, AMO will have to face two adverse impacts:
When the price gap shoot-up during the non market hours and the low liquidity levels.
The stock fluctuations that occur during the non regular trading hours for the reasons like the release of the company’s unimpressive economic data, or financial statement can cause a fall in the share prices that leads to the price gaps.
How to Convert Intraday to Normal Delivery in Zerodha & Upstox
Functionally, you may not be aware of the fact that the conversion of Intraday stocks to normal delivery is possible and you can do it in a split second by taking the help of Upstox and Zerodha.
Remember, both these companies provide you the conversion for free you will not be levied with a fee.
In the below lines,I will enlighten with:
Advantages of the conversion from Intraday to deliveries.
Conversion by deploying Upstox/Zerodha apps
After which, you can make the needful changes on your trading positions in the intraday trades.
Advantages of Conversion from Intraday to Deliveries:
Intraday can be comforting to trade as long as you are able to book profit but you can also convert your trade position to delivery, to cover up your incurring losses in Intraday trades.
Your delivery purchases may yield good returns on the same day then you can convert the deliveries to intraday and execute sell orders.
Market sentiments play a major role in the share price volatility and the bad news of the company can disrupt the share prices instantly, so you can control your lesses by converting to intraday and execute the sell order.
You may have bought shares on Intraday trade and good news can trigger the share price and lead to a decent return.
At times, the market expectations may make the share price go spiral, then you may long to hold the sell option to obtain more profit. For that, you will have to convert the intraday to delivery.
Limitations: Conversion from Intraday to Delivery, Vice Versa
The positions can be converted only with the availability of the margins.
Your delivery is entitled for conversion to intraday provided the delivery is purchased on the same day before the auto square off timing.
Simple orders are eligible for conversion from Intraday to delivery whereas the special orders like CO are not entitled for conversion from Intraday to Delivery.
Zerodha Mobile App:
Zerodha has released an app known to be Kite app, and with the aid of it, you can convert from Intraday to delivery and vice versa.
After signing in the Zerodha app, you will have to follow these steps to perform your objective of conversion.
Tap the portfolio.
And, then tap the positions.
On the position, tap to convert and then scroll up.
Tap on covert position.
The entire process flows in four steps and you can progress from stage to stage over the menu formats.
Upstox App:
To convert the stock position from Intraday to Delivery & Vice Versa, in simple steps.
Download the Upstox app from Apple Store/Google PlayStore and then register in the Upstox app.
Enter the portfolio section, and visit the positions book, and click for the order you intend to convert.
On the top right corner of the menu frame, click the convert button.
You will have to enter the quantity you want to convert.
Then, you must click the submit request for submitting your order.