Trading types...?

General
1

I wanna know what are the key differences between different trading types, like in intraday, we open and close our position in single day, but in options, we can hold our position to a week or two. (In futures also)

So what differentiates the intraday trading from option and future trading or what are the similarities.

Then what are the other different types of intraday trading like many traders trade equity, other margins, so basically there is no clear line between different types of trading in my mind.

Also, what are the settlement process behind equity in intraday trading, which i think, also known as deliavery trading.

Thanks for your genuine answers :slightly_smiling_face:

2

Intraday means, just for that day, for that trading session, you have to close your positions or they get closed automatically, there is no settlement here, if it is stocks, there is no exchange of shares, no delivery. You can go either long or short, and there is margin available, as you are not taking any delivery, and your positions will be squared off, for either profit or loss.

In derivatives, F&O, there is rollover, you extend, you carry forward your positions. I never did derivative trading, so I will stop here :grin:

3

Okk, so delivery trading is different from intraday equity trading, right? Because in delivery trading, we take delivery of shares so we can sell them whenever we want, and what are the selletment time, i mean share comes on t+1 or t+2 day?

Also, in intraday equity trading, how much margin do i get?

4

Intraday is for that single day, single session. Delivery means you are taking the shares into your account, you are buying.

Settlement used to be T+2 but they have changed to T+1 recently, not for all the stocks, but for some stocks.

I think margin with different with brokers and also different with stocks. I think on Zerodha, we get margin of 1:3 and 1:5.

1 Like
5

Trading charges are same for intraday and cnc on FnO segment but we need span margin for CNC type trade.

The settlement of FnO segment is T+1 and on equity trades the settlement is currently T+2 but after feb 2023 last friday (it could change depending on new company registration on exchange and will be next last friday of march 2023 and so on), settlement will be T+1 for equity.

1:5 in zerodha , you may check

1 Like
6

Is STBT allowed to do in cash segment? What is the settlement procedure for STBT may look like?

7

Looks like in Zerodha it is not available in cash but available in equity futures and commodity futures.

1 Like
8

However i can short sell in cash segment in intraday basis?

9

Yes, you can do that because there is no rollover and you have exit your positions before market closes either by yourself or the broker does that.

I think certain things are not allowed because there will be market manipulation, liquidity issues, margin risk for investors and brokers, technical difficulties etc.

Our market is small compared to developed markets like US or Europe, small both in size and history.

1 Like
10

Do i need to receive shares if the seller in intraday is unable to squareoff by buying back the shares?

Broker say if seller is unable to squareoff in intraday then share are auctioned and transferred to buyer in delivery form

11

I think that applies to BTST and not to intraday. There is not buying back, no auction, no delivery, so no penalty in intraday.

Experienced inrtaday traders can answer this.

1 Like
12

That is true, but i think in case of intrday short selling, if i open my position by selling 100 shares, then before closing of market, i have to buy 100 shares to make my position 0.

If i fail to square off till end of market, broker will square off, if broker also fails then broker buy 100 shares in my behalf from auction market next day and transfer it to buyer. Means if broker fails to square off my position in intraday, my position becomes CNC from MIS, i think…

13

I did not come across this in my experience, and from what I can think, it is not possible, all positions will be squared off, there is no concept of CNC here.

1 Like