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.
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.