Hi. I have a problem. There are times when I want to sell a stock that I have in my demat account in the morning and then buy the stock again on the same day in the afternoon on delivery when the price declines. The Kite platform does not allow me to that. It treats my sale in the morning as a short sell and squares off my purchase in the afternoon against that!. How can I resolve this? Or can I? Thanks.
Kite does allow you to do this but from a different point of view, the right point of view.
Lets assume you have bought a stock at Rs.100 in your Holdings. After a few days you see the stock price go to 120 so you sell it on that day in the morning. As of this sell trade, your stock is sold out from your Holdings.
Now on the same day in the afternoon, the same stock has fallen to 110 and you wish to buy it back and so you buy it back. So you have bought back the stock into your Holdings.
But how the system sees this is that you took a sell trade in the morning at 120 and you squared off this trade by buying it back at 110. So you make a Rs.10 intraday profit and the stock is still present in your Holdings at 100.
What you are saying is the holdings should be sold out at 120 and should be rebought back at 110(which will be the new buy price). But what happens in actuality is your Holdings remain at Rs.100 and you make a Rs.10 intraday profit which is the way the orders are processed at the exchange. The net effect is the same.
Thanks Srinivas. The only problem is that since it’s treated as an intraday trade, I’m not able to book the profit that I have made so far on the stock since I first bought it.
Well, you booked a Rs.10 profit in the intraday trade and the other Rs.10 profit is still in your stock holding because you bought it at 100 and it is now at 110.
Agreed, but isn’t he’s paying the brokerage for the ‘intraday’ trade for nothing?? Because he wanted to do a equity delivery transaction but zerodha made it into intraday just like that to charge the brokerage or what …??
Is this a Zerodha limitation or is it an exchange limitation?
It is not “nothing”. He got profit for 120-110=10 points.
Let’s say you had bought it on Day1 at 100rs/share. On Day5, in the morning, the price is 120, you sold your CNC HOLDINGS at 120. The same day you saw the price coming down to 110 so you bought it back by either (1) going to Positions tab and clicking Exit, or (2) placing a fresh CNC Buy order.
I didn’t understand what you meant by “and squares off my purchase in the afternoon against that”. Kite will square off only intraday un-exited positions. By selling your CNC holdings in the morning, you had exited those shares so there is no question of Kite squaring off anything. Maybe instead of CNC Sell order, you had placed MIS Sell order, that’s the only way I can think of in your case, for that to square-off.
selling on same day will be treated as Intraday.
if you want book the profit from previous holding then sell it using CNC Orders .
if again you want to buy that share for holding in long term or positional purpose buy MIS order then convert it into delivery.you have to pay the DP charges for it .Your problem will be solved.
Thanks, let me try it out.
Does it work the way @Litan_Swain mentioned ?
suppose i purchased shares in CNC for Rs 100 and the LTP is now 100 and the stock is in my holdings. now i wanna short sell the stock and i sold the stock at 100 and repurchased the stock at 90 so i make Rs 10 intraday profit. but as u said the holding remains at 100 and i lost Rs 10 as per the holding.
This means i got Rs 10 profit in intraday but lost Rs 10 in Holding.
100-90=10 profit intraday.
100-90=10 Loss Holdings.
10 profit -10 loss =00
with my brokers where the DP is a cooperative bank and no POA given to any of the 2 broker , i do not have to make choice while selling or buying if it is for intra day or delivery . if i purchase and do not sell by eod it automatically result in delivery vice-versa in case of sale.
@Krish @Archit_Jain1 @PrashDn @Litan_Swain @advait @Vikas_Bapurshe
same day sale and purchase will be treated as intra day because the net deliverable at broker level is zero. this is as per exchange in all shares except those in T2T and Z group . you will be charged intra day brokerage if any .
purchase one day and net sell another day will be treated as delivery sale for all shares and delivery brokerage if any will be applicable . for very next day sale (BTST ) demat charges will not be there but surely if sold after 2 trading days .
And if i get any profit will that profit will be credited as cash into my account Or will i get additional shares for that profit or anything else will happen?
I have a questions on same lines if i buy 10 shares of rs 100 few days back and then today i sold it at rs 120. Then later in the day if share price is 95 rs and i again buy 100 shares then will my buy average price will be 95, less than 95 or more than 95 ?
Selling and buying back holdings on the same day is considered as intraday. In such cases, holdings buy average remains constant. Explained here.
The difference between the price at which you sold the shares at and the price at which you buy back at will be your P&L.
And that profit will be added to my account as cash by Zerodha?
Yes, the profit will be credited to your available balance.
However, it’ll reflect in your Kite balance only after it is settled in T+2 days in the equity segment and T+1 day in the F&O segment. More on this here.