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YEAH MOST IMP THING

whats the diff btw sell and short sell

HEY ALL

am new here i require some info
i am using sharekhan services
and am trading with amt close to 30thousand
i usually do day trading gonna increase to 50k soon

my query is other then brokerage, service tax etc
is there anyother INCOME TAX to be paid if u do day trading

its just been few days since i have started this day trading
previous stock broker used to buy and sell shares over a period of month

so what will be the diff
is there any tax that will be levied if i do day trading

Your name is noworries. But you have only worries. How is that?

In case of cash market, the difference between selling and short selling is only this much. You can sell shares that are found in your demat account. In short selling you do not have share in your account, but still you borrow it from your broker and sell. In case of selling shares, you have to give delivery of shares. In case of short selling you have to compulsorily buy it back from the market before the closing of the trade for the day. If you do not buy it back from the market, shares sold by you will go for auction and you will take a bigger hit.
Regards
R. S. Iyer

short sell is selling something which you do not own ..that is you don't have any shares of that scrip.

example ..say SBI has gone to such a level where you predicts high resistance and that price is expected to go down.. ..at this point . ..even you don't own shares of SBI in your dp ...you can sell it off ...but at the end of the day you should buy it back....profit or loss is all depends at what price you buy it back . you need to have atleast same amount of money you are expected to sell it of in your account at that time...say if you have 30,000 in your account you can sell ...30 shares of scrip which is of 1000 rupees trading value.

what happens if you don't buy it ....after selling ...(called square off) .... your broker will buy for you in auction ...which is going to cost you even more .

also try to know ...what is normal order ...delivery based selling order and cover order ...etc ....there will many types of order ...depends of service provider.

few people allows shortselling if you have money in client account....few don't allow shortselling at all ....it all your service provider business rule .

suba

if ur only day trading and dont have a salary income ur gains will not be considered Capital Gains but Bsiness Income and will be taxed accordingly.


Thanks

noworries:

you happen to be one of the few who dytrade and actually have to worry about taxes on profits because almost 80 to 90 % preople loose money here

Welcome to the exclusive club of winners in daytrading