What Happens When BUY-> SELL-> BUY of Same Share on Same Day in Delivery Trading Mode

#1
Hello,

I have an question related to Delivery based Trading..

Suppose I have 1 share which is buyed 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 (??)

:confused: 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

:confused: I can hold that one which is buyed on 11:00 am for future Sell..?????

Please tell me in brief what happens here step by step ??

Please Reply me anyone as soon as possible..

Thanking You..
 

gsn57iaf

Active Member
#2
Re: What Happens When BUY-> SELL-> BUY of Same Share on Same Day in Delivery Trading

The total quantity traded in a day matters, when you purchase/ sell doesn't matter. So you bought 2 shares and sold 1 in a day. That means you have one share in your trading account which you can sell whenever you want.
But reverse can't be done as if you sell one share today then it has to be squared off same day or else you will face penalty. Hope this clears your doubt.
 
#3
Re: What Happens When BUY-> SELL-> BUY of Same Share on Same Day in Delivery Trading

Thanks for the Reply..

I mentioned the time for make it easy to understand..

Yes, you are right.. My main focus is on buy/sell not on the volume.. OK..

I clearly want to know that-

If I bought a share TODAY and then sell it TODAY and then again Buy it TODAY under Delivery..

:confused: So, can I hold that share which is lastly Buyed on same day.. ??

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 (??)

:confused: 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

:confused: I can hold that one which is buyed on 11:00 am for future Sell..?????

Please Guide me what happens here..??

Thanking You..
 
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sibu3168

Well-Known Member
#4
Re: What Happens When BUY-> SELL-> BUY of Same Share on Same Day in Delivery Trading

Thanks for the Reply..

I mentioned the time for make it easy to understand..

Yes, you are right.. My main focus is on buy/sell not on the volume.. OK..

I clearly want to know that-

If I bought a share TODAY and then sell it TODAY and then again Buy it TODAY under Delivery..

:confused: So, can I hold that share which is lastly Buyed on same day.. ??

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 (??)

:confused: 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

:confused: I can hold that one which is buyed on 11:00 am for future Sell..?????

Please Guide me what happens here..??

Thanking You..
FIRST THING YOU MUST REMEMBER IS THAT THE SHARE YOU WANT TO TRADE SHOULD NOT BELONG TO BE (Trade to Trade) CATEGORY.

Second thing is all the transaction should be in delivery mode (particularly if you trade with a discount broker). With traditional brokers, this requirement may not required. In delivery mode you can transact as many times as you wish. That means, you can BUY -> SELL as many times as you want in the same day but you can not initiate the position in SELL->BUY mode. To activate that option in delivery mode you have that share in your DP account which is mapped with your broker. You can operate in SELL ->BUY mode in MIS type or intraday type. One thing you must remember, you should not have any share on short side. If you have any share short on outstanding basis, then you must have that share in your DP account. Otherwise you have to pay penalty (depends on situation) to NSE. Generally, if you don't have any share in your DP account, then RMS may not allow you to initiate short position in delivery mode.

All transactions (whether it is delivery based or intraday) which are squared off in the same day will be charged intraday brokerage NOT delivery brokerage.

All outstanding long positions will be automatically converted to delivery and the shares will be transferred to your DP account on T+1 day. If you have outstanding short position, then you have give delivery of those shares before 10 AM of T+1 day.

In case of BE (Trade to trade) segment, if you bought 100 share of X company and sold 100 shares of that company in the same day, then you have to pay the price of 100 shares to your broker and at the same time you have to pay the delivery of 100 shares to your broker.

Hope it will clarify your doubt.
 
#5
Re: What Happens When BUY-> SELL-> BUY of Same Share on Same Day in Delivery Trading

FIRST THING YOU MUST REMEMBER IS THAT THE SHARE YOU WANT TO TRADE SHOULD NOT BELONG TO BE (Trade to Trade) CATEGORY.

Second thing is all the transaction should be in delivery mode (particularly if you trade with a discount broker). With traditional brokers, this requirement may not required. In delivery mode you can transact as many times as you wish. That means, you can BUY -> SELL as many times as you want in the same day but you can not initiate the position in SELL->BUY mode. To activate that option in delivery mode you have that share in your DP account which is mapped with your broker. You can operate in SELL ->BUY mode in MIS type or intraday type. One thing you must remember, you should not have any share on short side. If you have any share short on outstanding basis, then you must have that share in your DP account. Otherwise you have to pay penalty (depends on situation) to NSE. Generally, if you don't have any share in your DP account, then RMS may not allow you to initiate short position in delivery mode.

All transactions (whether it is delivery based or intraday) which are squared off in the same day will be charged intraday brokerage NOT delivery brokerage.

All outstanding long positions will be automatically converted to delivery and the shares will be transferred to your DP account on T+1 day. If you have outstanding short position, then you have give delivery of those shares before 10 AM of T+1 day.

In case of BE (Trade to trade) segment, if you bought 100 share of X company and sold 100 shares of that company in the same day, then you have to pay the price of 100 shares to your broker and at the same time you have to pay the delivery of 100 shares to your broker.

Hope it will clarify your doubt.


-- Yes, it's make me very clear.. Thanks

But can you tell me that what happens in my case (in my earlier stated Example) ??

Thanking You..
 

rkkarnani

Well-Known Member
#6
Re: What Happens When BUY-> SELL-> BUY of Same Share on Same Day in Delivery Trading

-- Yes, it's make me very clear.. Thanks

But can you tell me that what happens in my case (in my earlier stated Example) ??

Thanking You..
Forget the time you bought or sold till it is in the same session i.e. same day!
But for your sake let us also assume some time....
Say you
Bought 1 share Reliance at 9:30 for Rs. 900
Sold 1 share Reliance at 10:00 for Rs. 930
Bought 1 share Reliance at 03:29 for Rs. 900

Assume that there are no charges or that the above mentioned amount includes expenses and brokerage.

So what happens is :
You in effect bought 1 Share Reliance and need to pay Rs.870 to your broker! You do not have to Sell it back the same day.
Part of your transaction (1 Buy and 1 Sell) was intraday and you will be charged Brokerage at Lower rates as is usually the case! Delivery brokerage shall be charged on 1 Share that will be delivered to your DP !

I must add that : If this was a genuine query and you really did not understand how these transaction would go, you need to do some more 'study' of Stock Market mechanism before plunging into the world of Stock Trading! The Post is not meant to hurt you, its a genuine concern !
 
#7
Re: What Happens When BUY-> SELL-> BUY of Same Share on Same Day in Delivery Trading

Forget the time you bought or sold till it is in the same session i.e. same day!
But for your sake let us also assume some time....
Say you
Bought 1 share Reliance at 9:30 for Rs. 900
Sold 1 share Reliance at 10:00 for Rs. 930
Bought 1 share Reliance at 03:29 for Rs. 900

Assume that there are no charges or that the above mentioned amount includes expenses and brokerage.

So what happens is :
You in effect bought 1 Share Reliance and need to pay Rs.870 to your broker! You do not have to Sell it back the same day.
Part of your transaction (1 Buy and 1 Sell) was intraday and you will be charged Brokerage at Lower rates as is usually the case! Delivery brokerage shall be charged on 1 Share that will be delivered to your DP !

I must add that : If this was a genuine query and you really did not understand how these transaction would go, you need to do some more 'study' of Stock Market mechanism before plunging into the world of Stock Trading! The Post is not meant to hurt you, its a genuine concern !
--Thanks for your answer..

I clearly understand that what you want to say..

I know that when I First Buy and then Sell, That is Intraday and Square-off the position for the day..

:confused: But after that above stated position, If I buy that share as delivery again in same day, So can I hold that share for future Sell OR What to do ?? :confused:

I hope you can understand that what I want to tell you ??

Please Guide me and tell me If I am in the wrong way..

Thanking You..
 

rkkarnani

Well-Known Member
#8
Re: What Happens When BUY-> SELL-> BUY of Same Share on Same Day in Delivery Trading

--Thanks for your answer..

I clearly understand that what you want to say..

I know that when I First Buy and then Sell, That is Intraday and Square-off the position for the day..

:confused: But after that above stated position, If I buy that share as delivery again in same day, So can I hold that share for future Sell OR What to do ?? :confused:

I hope you can understand that what I want to tell you ??

Please Guide me and tell me If I am in the wrong way..

Thanking You..
Seems you are interested in an Yes or No !
So the answer is : YES, you can HOLD the share bought again for Future SELL !
I wrote the same thing earlier too but seems either my way of explanation was tardy or you simply are too lazy to read the explanation. My earlier reply clearly said that the Share bought gain shall be delivered to your DP, did that tell you anything ! ?
Here is my Guidance : Please gather more 'knowledge' abt Stock Market before plunging in. I am more than convinced, you are not yet ready for trading stocks !
 
#9
Re: What Happens When BUY-> SELL-> BUY of Same Share on Same Day in Delivery Trading

I understood your problem...

suppose u buy 1 share for delivery in morning say reliance.. u have funds, u get one share in delivery mode..

Then u want to sell 1 share for delivery, the system doesn't allow you.. because it says u don't have shares for delivery.. ( because u don't have reliance shares in your demat account ).. but u really actually want to sell, go back to first order, covert the delivery, to intraday and then come back, sell it as intraday ( or margin otherwise it will autosqureoff )..

once u take any buy order in delivery shares will come of to ur account in next 2 days ( working ).. and sell will immediately debit shares in your account and funds will come in next 2 days.. hope now its clear..
 
#10
Re: What Happens When BUY-> SELL-> BUY of Same Share on Same Day in Delivery Trading

Seems you are interested in an Yes or No !
So the answer is : YES, you can HOLD the share bought again for Future SELL !
I wrote the same thing earlier too but seems either my way of explanation was tardy or you simply are too lazy to read the explanation. My earlier reply clearly said that the Share bought gain shall be delivered to your DP, did that tell you anything ! ?
Here is my Guidance : Please gather more 'knowledge' abt Stock Market before plunging in. I am more than convinced, you are not yet ready for trading stocks !
:clap: Thanks for Everything..
I am able to understand your previous post..
But put these types of question for better and in depth understanding for me only..
Yes, I shall follow your guidelines..
I am very new to the Stock Market so that these types of questions may arise..

Hope You Help me in near Future just like that..

:clap: Thanking You again..
 
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