Suppose I have a stock that has been delivered (T+2) to me in my Demat. Now If I sell it on (T+4) day morning and buy same stock with same quantity in the evening. Will that be considered a intraday trading or not. I just want to know definition wise, is this intraday trading or not.
1 Like
It will be considered as Intraday trade.
@ShubhS9 or dear zerodha team, please provide guidance on the below queries, it will really help a lot while taking decisions in swing trading:
Considering now all stocks NSE BSE are settled T+1 day
Q1)If i sell T1 holdings which are yet to come in demat , how much % funds will be released immediately which can be used to buy new stocks in delivery/ intraday or F&O positions intraday/overnight on T1 same day?
Q2a) If i sell demat holdings lets say 100 shares of company A under delivery CNC → then i understand 80% of funds will be released immediately and can be used for anything , can i use this 80% + more as needed- to buy same stock of company A same quantity 100 again under delivery same day (and the earlier sell transaction of company A 100 shares from delivery will then be considered intraday and remaining 20% amount of earlier sell transaction of company A 100 shares from delivery will come next day in my zerodha account to be used for anything? (anything= stocks delivery/intraday or F&O intraday/overnight)?
Q2b) if i sell demat holdings lets say 100 shares of company A under delivery CNC-> then i understand 80% of funds will be released immediately and can be used for anything , Do i need now 100% of money needed to buy same day under delivery CNC same company stock A same quantity 100 shares in which 80% i can use what i have got but need to get more in the account as needed at that time of the stock price of company A?
Q3) in case of non orbis account and no DDPI or POA , if we have GTT sell orders on our delivery holdings does zerodha allows CDSL pin entry every morning so that in case GTT sell is triggered it executes the delivery holding sell on that day, if yes → how much time before market opening 9:15 am can we go and approve by entering CDSL pin in zerodha?
Q4) If there is hedge position of a - Long/Short Futures (stock/index) + Hedge via opposite option buy same quantity as futures (stock/index)-- and there are losses overnight and in coming daysin Futures, but hedge is intact and in profit ->> still as per MTM for Futures we need to feed the extra margin to maintain the Futures loss position or we need to feed only the difference of the Futures loss after subtracting the hedge option buy profit as displayed in Kite terminal?
Proceeds from selling T+1 holdings aren’t credited on the same day. These will be available for trading on T+1 day. More: Discontinuation of credit on sale of T1 holdings w.e.f 19th June 2023
Yes, when you sell shares that are already credited to your demat account, you will be 80% of the sale proceeds on the same day, these can be used towards any trades.
Yes, if 80% of the sale proceeds are the only funds in your account, to buy back the all sold quantity you will need to add additional funds as 20% are blocked and available only on T+1 day.
You can pre-authorize sell transactions from 8 AM onwards. More details here.
The profit you will be making on the long option position is unrealized and it isn’t added to your account balance until you exit the position. So if the futures position is on loss, you will have to bring in funds to settle this, if you don’t have funds in your account.
@ShubhS9 Dear Zerodha - kindly advise on one small thing
q1) I am asking from the context of sell order in GTT from stop loss angle when we buy any cash market stock , in cash market stock sell GTT order if the trigger price is within that moment of upper circuit and lower circuit but when the sell GTT trigger is hit the actual sell limit price in the sell GTT is lower than the lower circuit of that moment then the order will not go to the exchange ?
q2) in case of cash market stock – sell GTT order if the trigger price is within that moment of upper circuit and lower circuit and is lying in the zerodha system, and in few days or weeks stock price moves up such that the sell GTT trigger is now lower than the lower circuit of that stock at that new moment, still GTT sell order will remain valid and in the zerodha system although it will be triggered only when stock price falls back and comes and hit the sell GTT trigger may be in 1 or 2 trading sessions as there will be halts when lower circuits are hit?
@ShubhS9 Shubh Sir, my query is that example the following - I am having in demat holdings lets say example Apple 10 shares which on July 17th 2023 morning are of 25,000 INR (2500 per share x10q)- now i sell this on July 17th by selecting delivery sell not intraday sell and i dont have any other funds in my zerodha trading account → then i get 25000x80%- immediately in my zerodha trading account which is 20,000 INR and I add 5000 more same time from my bank to my zerodha trading account , then same day I can again buy Apple 10 shares in delivery considering considering price at buy moment 2500 per share or I need to add fresh entire 25,000 INR and not only 5000 INR to buy same day Apple 10 shares in delivery considering price at buy moment 2500 per share ?
You need to add only Rs. 5000 in this case.
What happens with regards to margin in case there is no futures trade but only 2 opposite option’s trades like a spread or a long straddle ?
In the case of long straddle, there won’t be any changes in margin requirement, as you have paid a premium to buy options, and loss is limited to the premium paid. Any profit you make will be credited once you squared-off the position. In case you have both long and short option positions, here’s your MTM and margin calculation works: MTM Margin calculations in options spreads
You need to only add Rs. 5000, not Rs. 25,000.
@ShubhS9 - Sir thanks a lot the above is clear just extending the above context as its really important to understand its core, kindly answer the following
Q1) when we sell anything by selecting delivery and we have that in our demat holdings and buy back again as delivery same quantity same day, then will this be considered as intraday short sell and square up kind trade or non intraday trade due to which a) in backend the demat holdings will get debited from demat account as the result of first leg sell delivery and b) same scrip will again get credited in demat as per settlement cycle as the result of second leg buy delivery-- because if this is not the case why 100% fresh money (80% which we get instantly+20%more from our side) will be needed to buy back the same stock same quantity in delivery after selling it from delivery same day. Please advise
1 Like
When you sell shares from holdings and buy back the same day, it’ll be considered as intraday trade. Also, there will be no debit of shares from your demat account.
1 Like
The best way to understand this is to experiment with penny stocks. Simply spend 10 or 20/- buying or selling a penny stock or conduct any experiment you want to do. Ultimately, you won’t lose more than 70/- or 90/-, but you will know exactly what happens in the market.
Coming to BSE Eq. Except T and XT (trade to trade) remaining groups like A, B, X groups are buy and sell possible same day(Intraday). Some stocks restricted but you can easily find list. Zerodha also providing margin data which contains all Intraday stocks.
@ShubhS9 - thanks a lot sir just one last query, kindly advise
For T1 holdings (normal stock like Reliance for example not trade to trade) - i understand we get nothing that day as funds as per new rules, however if we have to buy back same quantity same share considering same buy price at which we sold T1holdings at that same day- we need to then have 100% of the funds fresh from our side needed for this, and after this as T1 holdings will remain as T1 since we did buy back on same day or T1 status will be reset to fresh start that is T
Since you have bought back the shares sold on the same day, it will be considered as intraday trade and the holdings will remain in T1.