One day 1 : If I have 100 CNC shares of ABC company at price 200rs each share. share price: 200rs
One day 5 : The share price went to 210rs and I sold my CNC 100 shares @210rs: Profit for CNC : 1000rs
One same day 5 : After selling CNC, share price went down to 200rs from 210rs. If I buy back my CNC shares which I sold earlier, It will be considered as INTRDAY and I will get Intraday profit of 1000rs for it.
So, when I buy back, ABC shares will go back to my holdings with share price 200rs.
Question : When I did a buy back, I got intraday profit of 1000rs
What will happen to initial 100 shares which I sold from CNC holding for profit for 1000rs ?
As ABC shares came back to my holding, will it cancel my initial CNC sell profit and will consider only intraday profit ?
As you bought back the shares, they will stay in your holdings. Selling and Buying back the shares on same day will be considered as Intraday trade and the difference between the price which you sold at and the price which you buy back the shares at will be your realised P&L.
So he won’t get the earlier profit of 1000 (which he earned by selling his holdings).
He will get a profit of 1000 which is intraday profit (selling and buying again).
So basically he will earn only 1000 profit on that day