Simple query for delivery based trades


#1

Suppose I have 1000 shares of stock XYZ bought at Rs 100 each in my demat account. In couple of days the price climbs to Rs 105, and I sell 200 shares of XYZ from my demat holding at 09:45AM in the morning at price of Rs 105, but the same day later at 10:00AM I again buy 200 shares of XYZ at Rs 105 as CNC order with intention to take delivery, will this be counted as intraday short trade ? What will be the effect on my holding status ?

Or if I buy 200 shares of XYZ the next day will it be considered a STBT (sell today and buy tomorrow) transaction ?


#2

Yes it will be intraday trade.


#3

No, in this case, its a fifo… First in first out.

So you will be essentially selling out the first 200 shares of your demat. So its not intraday.

If however your 1000 shares were bought less than 2 days ago, then today’s transaction is considered CNC intraday.


#4

Thank you for the answer mate.


#5

So those 200 shares of XYZ I bought at Rs.105 at 10:00AM, will be shown T1 status next day ?


#6

Yes!

800
200 T1


#7

Nope.If you sold and bought today itself it will be considered as intraday only.In this case Next day you will have 1000 quantity in your holdings at 100.If any MTM arises because of intraday trade(105 sold and 105 bought so no profit no loss but brokerage willl be charged which will be debited from your account ) it will be posted in ledger.


#8

No Sir, I beg to differ… My answer posted above.


#9

Gentlemen, thank for your replies, but all of those are contradicting; Could someone from Zerodha please help with this ? P.S: I am a member of Zerodha, and trade passsively.


#10

Hi,I am from Zerodha only


#11

Thanks for the reply Raghavendran; Then can you please explain how the FIFO mechanism (First In First Out) affects this scenario.


#12

In this scenario there was no concept of FIFO as there was only intraday trading.

You can go through this link for knowing more about FIFO calculation.https://support.zerodha.com/category/q-backoffice/portfolio/articles/how-is-the-buy-average-calculated-in-q


#13

But the first 200 shares that I sold at Rs 105 was deducted from my demat holdings; am I right ?


#14

Well Sir, Zerodha has a lot of explaining to do, as I was told the same thing in the exact scenario that I faced with my NALCO holdings.

Please clarify!


#15

I have some spare shares in my demat, I will try it tomorrow myself and see what happens.


#16

(1)you sold first and bought later same day OR you buy first and sell later same day will be an intraday transaction since no delivery involved . brokerage and expenses will be charged accordingly. NOT POSSIBLE in T and Z group shares unless you already hold, and ready to release delivery /funds as the case may be.
(2) yes it will be STBT transaction and delivery from your demat will be removed against your sale position and later credited on pay out day for your purchase position. BTST allowed in T and Z group shares too but involve a very heavy risk and many broker do not allow .


#17

Is STBT allowed in equity cash segment ?


#18

YES you can do STBT in any share provided you have delivery in demat .
you can also do BTST in any group share but with a rare risk of : what if the selling broker do not deliver your bought shares as per schedule ,your sold shares will go for auction/square off.


#19

So to do BTST there must be shares in my demat to mitigate the risk of short delivery ?


#20

You may not have delivery ready in demat in BTST ( you must have in STBT ) but it carry a RARE risk of short delivery by seller which is normal in all btst trade. I did btst even in T group share but never faced this risk but surely risk is a risk.