Day trading query

Hi All,

Can someone please tell me how day trading works. I mean shares are not delivered to DP account !! So how is one able to sell? Is Short delivery not applicable in intraday trading?

Day Trading Is Allowed By All The Brokerages

Short Delivery Not Allowed Till The Borrowing & Lending Of Shares Come Into Effect.

Presently If You Short Sell, Betting On A Stock That Will Come Down, You Will Need To Cover Your Short Irrespective Of Which Way It has Moved. Before The Market Closes On The Same Day.

Happy & Safe Trading

SavantGarde

Thanks very much for your answer @SavantGarde. Actually, I am a newbie and would like to read a layman terminology answer

I am still confused. E.g. if in morning I buy 100 shares. And in afternoon I square off these. How can I be sure that the shares that I bought in morning are not short delivered to me. If indeed, these are short delivered and I sell these in afternoon(square off) then I guess I would be in risk of attracting the auction penalty(as in case of BTST). Is this the way day trading work.? Is there a risk of auction penalty during day trading also as it is in case of BTST.

You buy one scrip at morning and sell at noon before market closes, its day trading or intraday trade, you can even sell scrip first and then can cover or can say buy before market closes.

Shares will not go into auction like that, and good thing the brokerage charges are less than cash cash basis

When Both Sides Of The Trade Is Executed On The Same Day The Settlement or Delivery Doesnot Come Into Play....Therefore You Need Worry About Short Delivery.

BTST Is A Different Ball Game.
The Risk Is Always The Traders Because Settlement Of Delivery Comes Into Play..Therefore Closeout & Auction Is Always A Possibility, Unless Until You Already Are Trading BTST or STBT If You Have The Quantity In Your Holding.

If You Want To Take Necessary Precautions Then It Is Advisable To Trade In Stocks As BTST or STBT Which You Already Hold.

Happy & Safe Trading

SavantGarde

Let me try to explain this to you in very simple words. In the Indian stock markets, delivery is a term used to describe the number of shares that you need to give or take at the end of the day. Understood, so far?

Great! So at the end of the day if you do not have any position in any share then you dont have to take or give any shares.

So you can buy shares in the morning and as long as you sell them before the market closes, you will not have to take delivery.
Similarly if you sell shares in the morning and as long as you buy them back before the market closes, you dont have to give delivery.

Example -
You sell 100 shares of Suzlon in the morning and you buy 100 shares of Suzlon at 3:25pm. Then -100+100=0. So at the end of the day you have no position in the share, so you dont have to give or take any shares.

Just a simple questions "HOW" to go about doing Day Trading?. Please explain the steps of "HOW" as per ICICIDirect. As far as I know if I go to Buy and Buy shares in the morning, I cannot then go to sell and sell them off since Icicidirect will tell me that those shares are not in my demat. Any other menu item to go to?

Thanks all of you for your help. It looks now that the picture is clear for me. This site is the best ever that one can find on Indian stock markets and you people out there always rock.

@new2sm, I guess I can be of some help to you. For day trading through ICICI direct, you have to choose the margin option instead of cash while trying to buy shares.Magin trading is same as day trading. Always before buying shares for day trading, ensure that they are eligible for day trade. Not all stocks are eligible for day trading. Please see margin trading demo in ICICIdirect by clicking the customer service link and then demo.

margin trading is taking leverage...ie u can borrow money frm icici upto 20 times ur money so a 5% loss and ur wiped out..

margin trading requires considerable skill so i would suggest trade with small amts first in cash and when u gain some confidence and experience then use margin money...

peple i have a query on intra. i am new to intraday.

suppose i short sell 10K shares in morning (say i have some 10L in cash so even 10 times leverage means 1 crore). by evening i try to square of position at "some price" positive or negative. my confusion here is. . "I had buyers in morning when i sold at say 1lakh shares worth 100 rupee each" but in the evening stock is illiquid hence there are some 50K are only sold! how is this situation handled? what will happen to 50K remaining stocks? who will buy that. i asked my broker he advised that it will be settled on same day at market price. but how its done if stock is illiquid!!! kindly advise.