Simultaneous Buy and Sell

Can a person buy and short at the same time? What happens when it is done in Intraday trading?
For E.g- I buy 1 lot of Alumini at 125.5 expecting an uptrend but due to reversal, the price starts falling. If I sell 1 lot of the same at 125.0 will it be a new order or the buy of the previous order gets completed?

If you happened to initiate the first trade in Cash, then sell in MIS, CO, BO when you initiate the second trade. It will not get offset. Ofcourse you need the required margins.

End of the day the intraday orders will be automatically closed, if you don’t do it.

This can be done in equity. Not sure about commodity.

hello trader,

This article explains it all:

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Thankyou :slight_smile:

Irrespective of whether the sell order is considered a fresh “open trade” or a “square off” trade / “close trade”, you are still making loss, isn’t it ?! . .you can even imagine in ur mind that the sell order is a fresh/new “open trade”, then, go on to do ur thing. :slight_smile:

why don’t u buy current month’s futures contract & sell next month’s future contract at same spot price ?! This will create a spread trade. you can either place Stop Loss for Long contract, if u expect underlying price to fall BIG, or, SL for Short contract if u expect big upside movement. The risk in such a trading strategy is, after hitting SL, stock price can revert. So, if SL hits, u don’t want Price to change direction. This also means, u need to choose the right day to trade & avoid trading this strategy on very volatile days such as on results announcement, rbi rate cut event, etc. On some days, whole market keeps moving in single direction in controlled manner. This strategy is for those days.

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