I was thinking to hedge my holdings in intraday by selling and buying back my sold holdings. Will this transaction change my average price of holdings? ideally it should not because stock would be in DMAT account isn’t it?
When you trade Intraday in shares which are already part of your holdings , your intraday trades will not affect your buy average calculation. This is because the intraday trades are considered as a separate transaction altogether since the stock doesn’t actually move in/out of your demat account .
Thanks for confirmation! Then its safe to hedge holdings whenever market is in negative mood!
Yes but only for “INTRADAY”.