How Can I sell What I dont Have in IntraDay Trading? If I am Doing Intraday I am Buying and Selling on the Same Day In How Many Days the Sales Preceed Will Get Credited in My trading Acc?

General
2

Supriyo, 

It is called shorting, when you sell what you don't have. We will soon have a chapter on Varsity that will explain you in detail. 

When you sell something, the exchanges don't ask for what you have sold immediately. They ask for the stocks only on the next day. So if you sell something and buy it back before the close of day, you will have nothing to deliver next day to the exchange. So using shorting, you can benefit if you think the price will go lower, but remember that you have to buy back the stock before end of day. 

Any profit from intraday trading, either buying and selling, or selling/shorting and buying, is credited to you on T+1 day. The next day. 

Any loss is debited immediately. 

1 Like
3

Yeah supriyo. It is possible that you can sell without having it with you. But you are obliged to deliver the shares to the other person. When other person who bought shares from you, sells it to somebody else, then it becomes like you have to sell to that third person. This keeps on rolling until the close of trading. Finally during close, NSE will annouce how many shares are really taken from someone's account and credited to demat of some other person's account. This is called delivery information. You have a look here http://www.nseindia.com/products/content/equities/equities/eq_security.htm


In example above TOTAL TRADED QUANTITY is 100+100+100+50+50 = 400

But in reality,

100 shares are taken from A and credited to E and F's demat account (50+50)

So real trade of 100 shares happen between A and (E+F). This 100 will be DELIVERABLE QUANTITY

If you observe closely, persons B, C, D have done intraday trading (they bought and sold on same day) while persons A, E, F have done delivery trading, they either buy or sell, but not have done both.

SHORT DELIVERY

In the example above, assume person A was not having those 100 shares in his demat account while he was selling in the morning. But still he is allowed to sell hoping he will buy back the shares and give it to exchange for delivery before evening.

In case, he is not buying back 100 shares before evening, he will be a defaulter, because exchange needs to credit E and F (50+50) shares, but where will they get it? This kind of situation is called SHORT DELIVERY and the person A will be taken to auction market to forcibly get 100 shares from his pocket.

SHORTING IN INTRADAY

Assume person A has sold those 100 shares without really having them in his demat account but before evening he purchases the same quantity of shares from someone else, say Mr. X. Now since he sold 100 shares to B and bought back 100 shares from X, he is not obliged to give the exchange any shares. Now Mr.X is obliged to deliver the shares to B or from the example you can see, Mr. X needs to deliver (E+F) in background. Hence Mr. A has successfully done his short selling in intraday (Without defaulting)

SALE PROCEEDINGS

  • The profits what you earn in intraday is usually credited on T+1 days and you can withdraw it on T+2 day.
  • The losses you make in intraday will be immediately debited by the broker.
  • The shares you purchased (but not sold before evening) will be credited to your demat in T+2 days.
2 Likes
4

Let me put it.in another way. I am saying I bought 100 shrs of SBIN @350rs nd sold it the same day…@355 rs at profit… I am asking I still don’t have the shrs how can I sell them as it will get credited on T+2 days ? Plz answer

5

Similar to shorting and buying, you can also do buying and selling for intraday. You don’t have to wait till the shares come to your demat account to sell. You can buy and sell the very next second.

6

i Got You Bt still curious to know the back side activities that took place when i buy share and sell it the same day Stock Xchng do not credit my Demat in Place It Credit the stocks whom I sold the shr is it like that? and i will receive the amount the very next day when? early or at the day end ?

7

Does Zerodha allow Shorting?

8

Thanks a tonne AastroGuru… its crystal clear now…