Help with day-trading

#1
Dear all,

I am a newbie to intra-day trading. I have a query.

1) I do not have any shares of company "XYZ". But expecting that stock will go up, I place an "SELL" order for 100 shares @ Rs. 100/-
This order is executed.

2) Now, I need to square off above position. So, I place an order for "BUY" 100 shares @Rs.95/-

Now, stock price can go up or down.

Case1: Stock end price is 90 -> BUY order will be executed. I make profit of 5*100 = Rs.500/ - brokerage. Is my understanding correct?

Case 1: Stock end price is 105 -> BUY order will not be executed. What will happen in this case? Do I lose money? If so, how much? Can some one explain in detail pls?

Thank you.
 

nac

Well-Known Member
#2
You wanted to differentiate like Case 1 and Case 2. By mistake you have named both the cases as CASE 1. Go to edit and correct it.
Case1: Stock end price is 90 -> BUY order will be executed. I make profit of 5*100 = Rs.500/ - brokerage. Is my understanding correct?
Your understanding in this case is right.
Case 1: Stock end price is 105 -> BUY order will not be executed. What will happen in this case? Do I lose money? If so, how much? Can some one explain in detail pls?
Here closing price of the stock is 105/-. It might have come down to 95/- or even below and come up and closed @ 105/-. Here you would have earned profit same as the above scenario.
If the stock didn't come down to 95/- and ended up @ 105/- and your broker squared off your position @3:30 your loss would be Rs. 500/-