I have one query
Suppose I bought 1000 shares for 1 Rs of X company on holding basis. I sold it for 3 Rs with the profit 2000 Rs. And after selling the price went down to again at 1Rs and I bought it again for 1 Rs with same 1000 Quantity soo will I get 2000 Rs more in profit for short selling my shares and buying it back at low price. And getting total 4000 Rs in profit ???
Not 4000, when you sell at 3 and buy back the same day at 1, you will be making Rs. 2 * 1000, intraday profit.
When you buy back, shares will be back in your holdings on which your P&L will be 0 as you bought at 1 and CMP is 1 as well.
Assuming
I had purchased a stock for Rs.5
I sell that stock for Rs 10.
Now after selling the stock the stock goes down to Rs.2. Can I short sell the sold holding and take the profits? Check the image attached!
You mean to buy back the stock which you’ve sold from your holdings?
Yes you can, as you sold it at 10 and later buy back when price drops by Rs. 2, ie. to 8. The difference will be your intraday P&L.
Yes sold from my Holding. What will be my income will it be profit or Loss?