Selling stock in loss

Zerodha
1

Hi All,

If I am having loss in some stock in my holdings and stock is going further and further down.

To manage my losses if I sell the stocks and buy the same stock if price falls more in my positions, how will the profit and Loss calculation work in that case

Can anyone please help to understand

2

@Komal_Bharambe If you sell a stock from your holdings and then buy it back on the same day, this transaction is considered as an intraday trade and any resulting profit is classified as intraday profit.

For example:
Suppose you sell 10 shares of a stock at ₹100 each and then buy them back at ₹90 each on the same day. Your profit per share is ₹10, resulting in a total profit of ₹100 (₹10 x 10 shares).

1 Like
3

Thanks for clarifying @JuhiMahiwal

And what If I bought 10 shares of the stock at 120, sold it at 100 and buy again at 90?

Selling at 100 and buy again at 90 is clear that I will have profit of ₹10 per share

But what happens to the loss of ₹20 per share that I got when I sell the stock at 100 when buyed at 120

Will it show all profits and losses together?

Like -₹20 *10 + ₹10 * 10

4

Considering all three transactions are fresh trades, the first buy-and-sell will result in a loss of ₹20 per share (₹20 × 10). If you buy back the shares again at ₹90, that purchase will be treated as a fresh buy, and if you don’t sell them again (i.e., don’t square off), the shares will move to your holdings.

5

OK thanks