Some clarifications regarding delivery (swing trading)

newtrader101

Well-Known Member
#1
Hi traders,

I'd a discussion with Sharekhan staff regarding delivery and settlement.
Many traders are not clear about these procedures and suffer losses. Let me put across what I've understood, hoping it may be helpful. Do correct me if I'm wrong:

  • Swing trading has more charges overall than intraday. Generally, a price change of atleast 2% is needed to make any profit.
  • The shares which you buy today, must arrive in your account before you sell them.
  • If the trader from whom you bought them had short sold them and did not buy back at EOD, you will not get delivery.
  • In such a case if you sell them, it will be considered a short sell.
  • This will lead to your sold shares being bought for auction on T+2 day. This may or may not be for a profit.
  • The auction is during after market hours.
  • The profit/loss from the first sale would become nil. The profit/loss will be from the auction. There is no clarity about whether the price range of the auction will be the same as the price range of the day.
  • After the auction the shares will be credited to your account, as your sale had become invalid.
 
#2
Hi,

We request you to share your contact and account details in direct message so that we can have our representative get in touch with you.

Cheers


Regards
Team Sharekhan
 

newtrader101

Well-Known Member
#3
Team Sk,

This is not a complaint. If I have one I'll contact you.

I understand that the obscurity about the price range of the auction is not in your hands to clear.
 
Last edited:

newtrader101

Well-Known Member
#4
People,

The new version of trade tiger has a scanner. Great. Hope TSK will make Intraday scanners available as well.
 

newtrader101

Well-Known Member
#5
Caution regarding Trailing Stop order and converting intraday posns to delivery

Today I bought TATASTEEL on intraday margin (auto square off at 3:15 pm). I placed a trailing sell order. Then I converted these shares into delivery positions, thinking to manually square off during 3:15-3:30 pm. I did not cancel the Trailing sell order. My mistake.

What happened was:
The trailing sell order hit my stop at 2:35 pm, resulting in a SELL position. This autosquared off at 3:15 pm, resulting in an unwanted loss.

I could not square off the delivery portion manually either, now I am left with TATASTEEL shares that are on a downtrend.

BE CAREFUL TO CANCEL YOUR INTRADAY ORDERS WHEN YOU CONVERT THEM TO DELIVERY.
 

newtrader101

Well-Known Member
#6
AVAILABLES and RECEIVABLES in DP account. Which of these can you sell?

In DPSR,
AVAILABLE shows the shares you have bought (intraday today/delivery).

RECEIVABLE shows, those shares from the above, which were bought on delivery (a few days prior to today), that are yet to arrive in your DP A/C.

When they arrive in your DP a/c, RECEIVABLE will show them as '0'.

So, if you want to sell the shares you bought on delivery, you have to wait till they show as 0 in your RECEIVABLE.

Then they will display under DP QTY.
 

newtrader101

Well-Known Member
#7
Rough estimate of break even point for delivery and intraday

As of today (02-03-2017)

If you bought and sold at the same price
Delivery Intraday

Govt
expenses:

0.21 % (Del) 0.06%(Intra)

Brokerage
For non-discount
brokers (eg- SK):
0.25% (Del) 0.05%(Intra)



Total expenses
0.71% (Del) 0.16%(Intra)

Breakeven
point (LONG)
1.0071 (Del) 1.0016(Intra)

(SHORT)
0.9984 (Intra)


EXAMPLE: If you bought a share at 120 for delivery, you have to sell it above 120 x 1.0071=120.86 for any profit.
If you shorted a share at 130 intraday, you have to buy it below 130 x 0.9984 = 129.79 for any profit.

Please correct me if I'm wrong.

(Your overhead expenses like internet, computer etc would also need to receive consideration)
 

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