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  • Category: Stock Market

    Buy and sell on the same instrument at the same time


    Interesting in intraday trading? Wondering if it is possible to buy and sell on the same instrument at the same time? Here, on this page you can read the advice from experts and get the answers you are looking for.

    Can we do both buy and sell on the same instrument at the same price by intraday trading?

    For example, Buy 50 shares of Tata steel at 615.00, Stop loss at 610.00, set target as 625.00.
    same time Sell 50 Shares of Tata steel at 615.00, Stop loss at 620.00, set target as 605.00

    Can we earn profit from either one of the above trades?
  • #144687
    If margin norms as per rules and conditions with the broker are complied, the intraday transactions with the right code for intraday transactions can be ordered. If both the transactions go through as expected there is no problem. But if the second happens and the first does not happen, then that will cause short delivery issue. But, at the day end, the squaring off will take care and the transaction .The squaring may not be as per your expectation, but may result in loss also.

  • #144707
    What is the purpose this selling and buying. You are buying at a higher price and selling at lower rate as per the details given For buying target is Rs.625/- For selling the target is Rs. 605/- You are spending more for purchase than what you get in the sale. Keep quiet. Your shares will be yours only. If the price increases you can think of selling at that time. There is no logic in your proposal. Whether they accept or not is different. But your idea is not clear to me,
    What purpose it is serving, no clue.
    However you can follow the thread of Mr.Venkiteswaran given above and understand and then proceed.

    drrao
    always confident

  • #144749
    You have asked an intriguing and slightly confusing question. Some fundamentals are to be understood before going in for the subtlities in this areas.

    Now please try to understand that you can not sell a share which you do not possess with you until unless you have a margin account with a broker and you are a regular short or long player.

    Anyway not going in the deep of subject if you have a demat account (as is evident from your question that you have one as you are ready to do those transactions once an expert gives a green signal) you can buy or sell shares as you wish except which you do not possess for which margin account will be required.

    You can do multiple operations in a day in same scrip or different scrips with limits or targets or stop loss but the final outcome will depend on the intraday movement of those scrips and your net loss or profit will be accordingly available to you. For every transaction there will be different scenarios with movement of the scrip during the day trade.

    Now coming to your question the first part is simple you can buy the shares and pay the money. Generally it takes 2 days to settle. It means after two days these shares will be deposited in your demat and money which was reserved from your account for this transaction will be taken out from your account.

    The second part is not possible as you do not have those shares with you today. If your demat account is having facilities for margin or options or future trading and you know how to do it you can do the second part also and you have to square it off or settle it within the settlement period.

    Knowledge is power.

  • #144893
    Intraday trading or day-trading involves in buying & selling of stocks on the same day..Yes t is possible to buy and sell on the same instrument at the same time. Yes you can do both buy and sell on the same instrument at the same price by intraday trading.
    For example, Buy 50 shares of Tata steel at 615.00, Stop loss at 610.00, set target as 625.00.
    and same time Sell 50 Shares of Tata steel at 615.00, Stop loss at 620.00, set target as 605.00

    If the shares are sell and buy on same prices the you will in loss situation as there is intraday broking fees for both selling and buying the shares.
    It will upon the situation whether you will earn profit or loss.
    Like if you buy share at Rs 615 and sell at Rs 625 and
    Selling price of shares > Broking charges + Price of shares

  • #144946
    Read the question very carefully. Yes, you can do intra-day trading as per the example mentioned by you. But I feel that in this particular case, you have not taken into account the trading fee (brokerage) and other associated costs. I don't think that after taking into account the brokerage and other associated costs like STT, Stamp duty, etc., you will be benefitted. Moreover, the profit, if any, from intra-day trading is taxable @ 20% on profit.

    Intra-day trading is very risky and I have heard many people have lost lakhs of Rupees on a single day in intra-day trading. So, I strongly advise you against this risky trading game.

    Caution: Explosive. Handle with care.


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