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  • Category: Stock Market

    What happens when you buy and sell same share on same day in delivery trading mode?


    Need guidance on buying and selling of the same share on the same day? Get step by step guidance on whether this is possible and how to do the transaction.

    I have an question related to Delivery based Trading..

    Suppose I have 1 share which is bought on 1st Aug. I want to sell that 1 share on same day (1st Aug). Now I again Buy that 1 share on same day (1st Aug).

    Make it very clear (All The Following Trades are under Delivery Mode):-
    1st Aug (09:30 am):- Buy 1 share.

    1st Aug (10:00 am):- Sell that 1 share.

    1st Aug (11:00 am):- Again Buy that 1 share.

    1st Aug (03:30 pm):- Again Sell (?)

    So here I want to know that is it compulsory at that stage to Again Sell that 1 share before the end of the Trading session (03:30 pm) on 1st Aug.
    OR
    I can hold that one which is bought at 11:00 am for future sale?

    Please tell me in brief what happens here step by step.
  • Answers

    4 Answers found.
  • First of all if this is intra-day trading you are talking about then you cant carry over positions, otherwise it is absolutely fine to carry over positions. You can buy and sell the same share several times no problem with that, the only difference here is if you are trading intra-day at 330 pm on Aug 1 your positions are squared off i.e., your broker sells your shares if you don't. If its not intra-day you are free to carry over your positions and dont have to sell at 330 pm on Aug 1.

  • In delivery trading mode there is no need to sell the bought share on the same day. There are two modes of trading intra day / margin trading and delivery based trading. In delivery based trading the brokerage charges are more than intra day trading because the shares are delivered in your demat account. In intra day trading you can purchase more number of shares because you have to pay only a part of the value of the share but there is restriction that you have to sell the share on the same day i.e before closing of the market even if you are in loss. Even if you do not sell the share it will square off after closing of the market on that day.

  • For being able to trade a share twice in a day, you can try following combinations:

    • Do intra-day trading for for shares of a particular company using your online demat account. You can buy shares and sell them on the same day. Please note that buying needs to be done in the morning session for intra-day trading and not during the last 1-2 hours of a trading day.

    • You can do intra-day trading for a company shares by buying it and then selling it within few hours. Similarly, you can then buy the shares again through normal delivery trading which doesn't require you to sell them on that day itself. For delivery mode trading, you can hold the shares for several days, weeks, months, etc.


    Thanks & Best Regards,
    Bhaktee


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