Newbie- Square off confusion

#1
I have recently opened an account with Zerodha. I have understood some basic concepts of day trading but this 'Square Off' term is a little bit confusing for me. Till now I have been buying and selling commodities on the same day. But what if I was not able to sell the commodity once I bought it with in a day? Can I sell it other day or if I try to sell it other day do I have to square it off with another buy? :confused:
 

Mr.G

Well-Known Member
#2
If you buy it intra day then it gets auto square off, square off means that "to close open position". If you have position open eg 1lot alumini, if you sell that 1 lot then you are "squaring off " your position.
 
#3
Thanks for the reply,
so we have to sell it even of it is a profit or loss, else it will automatically sold at closing price ? Is there a way where I can carry forward this trade to next day?
 

Mr.G

Well-Known Member
#4
If you want carry forward trade then that is broker specific if you can convert intra day trade to carry forward, it is not fixed. Yes your trade will close when exchange closes. Square off yourself it is preferable that way.
 

bunny

Well-Known Member
#5
Thanks for the reply,
so we have to sell it even of it is a profit or loss, else it will automatically sold at closing price ? Is there a way where I can carry forward this trade to next day?
In most brokers' online-trading software, there is an option for specifying which orders are intraday and which are to be carried over to next trading sessions. Intraday orders are usually called as 'MIS'(margin intraday square off) while orders which you wish to carry may be called as CNC(cash and carry) or NRML('normal') orders.

If you choose to punch a MIS order, then the brokers software will automatically close the MIS position at a specified time, which is usually 15 mins earlier than the closing time. All MIS trades whether profitable or losing will be closed without any consideration.

If you want to carry over any MIS position to next trading session, you will have to do 'position conversion'. Option for this will also be provided in the broker's software.
 
#6
In most brokers' online-trading software, there is an option for specifying which orders are intraday and which are to be carried over to next trading sessions. Intraday orders are usually called as 'MIS'(margin intraday square off) while orders which you wish to carry may be called as CNC(cash and carry) or NRML('normal') orders.

If you choose to punch a MIS order, then the brokers software will automatically close the MIS position at a specified time, which is usually 15 mins earlier than the closing time. All MIS trades whether profitable or losing will be closed without any consideration.

If you want to carry over any MIS position to next trading session, you will have to do 'position conversion'. Option for this will also be provided in the broker's software.
Thanks! This one comment clears my doubt fully! Thanks to both of you!
Zerodha has both MIS and NRML Type of orders.
 
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