Can I Hold Intraday Stocks  to Next Day?

Certainly not, you cannot hold intraday to next day because it doesn’t fit into the fabric of the intraday trading rules and regulations.

It is quite logical to have a desire in holding your intraday stock to the next day when you find the option put can lead to a heavy loss.

In day trading, if you delay in selling the intraday stocks with a fear of incurring losses, then the stock exchange will lay a penalty. Only alternative in such a scenario is to minimise the intraday trade loss through a possible means. Now, try to find an answer to the two questions below. 

Do you want to avoid penalties on your exit position stocks?

Do you want an alternative way to protect your stock losses? 

For both the issues you need not panic, a responsive stock broker like zerodha has a record of staying committed in providing stock market services.

Do stay connected and go through the following lines on Convert the Position Feature (intraday stocks to deliveries, & Vice Versa)  to reduce financial losses in a day trade.  

After taking on the responsibility of your stock trading, Zerodha team shall automatically square off the option put.  

Zerodha team closes the exit position of your stock depending upon the kind of securities you are operating in the markets. 

The stock markets have set the closing of the exit position for different categories of securities like equity/cash (3:20pm): equity derivatives (03:25 pm) : currency derivatives (4:45 pm) and for commodities (25 minutes prior to the stock market closure).

Zerodha shall auto square off your held stocks but charge you with an additional fee : INR 50 + 18 % GST. 

Zerodha Converts Intraday Stocks to Deliveries:

For the purpose of applying the ‘position feature’ you can utilise the service on the kite platform, a mobile app, exclusively designed for their clients. Interestingly, the kite platform does not charge you with fees.  

To minimize the losses on the traded stocks in intraday trading the best way is to convert the position feature. 

What is a position feature?

It is a feature that allows you to switch your trade from intraday (margin intraday square off) to delivery (cash and carry) and vice versa. 

Example,

Converting Intraday to Delivery: 

Assume that you have bought (option buying) 100 stocks of the ONGC Ltd via intraday trade after the volatility settles down and decide to sell out (option put) in two to three hours then change your trade plan, i.e., keeping shares to the upcoming week to avoid a loss intraday or in anticipation of good news.

Advantages of Converting Position:

If you are trading stocks about to lose money  in Intraday then you are recommended to convert your exit positions to delivery which means you are taking time to manage the losses.  

If you have bought a delivery stock and found that the stock price will give high appreciation/spread of negative news of the stock, then convert the delivery to intraday and execute the option put (sell order).

If you have executed option buy and bought shares on intraday then with a positive news in air, can bring about a rise in share prices.  

You can convert instantaneously from the intraday to delivery and the share can yield to more profits.