intra day

Intraday v/s Delivery

Intraday Trading:

When a trader selects the Product type intraday and in his/her trading account credit of rs. 25000 then trader can make an open position of 2.5 lacs if broker provides the extra 10 times margin to a trader but the extra margin provides on some selected stocks (blue chips category stocks).

If trader made the profit of 2000 rs. and square off that open position then broker take back that extra margin provided and 2000 rs. credited to trader’s account and a new balance is 27000 rs. excluding brokerage and tax charges.

Similarly, If trader made the loss of 2000 rs. and square off that open position then broker take back that extra margin provided and 2000 rs. debited from trader’s account and the new balance is 23000 rs. excluding brokerage and tax charges.

there are some rules in intraday trading:

if the trader selects the intraday trading and made an open position then its compulsory to close that open position on a same particular day before the end of the market.

if a trader made the loss 80% or 85% (based on broker) of the free amount in his/her trading account then broker’s system would automatically be squared off all intraday open positions.

if the trader doesn’t want to square off their intraday open position then broker’s system would automatically get squared off at 3:15 pm or 3:20 pm (based on broker).

Delivery Trading:

When a trader selects the product type delivery and in his/her trading account credit of rs. 25000 then the trader can make an open position of only Rs. 25000 because most brokers do not provide the extra margin on delivery trades.

Delivery trades means trader wants to hold that open position more than 1 day.

Delivery based trading in India works on a T+2 rolling settlement cycle.

means when you buy shares on, say,

Monday (also called T day),

Tuesday (T + 1 day ),

you get the shares on Wednesday (T + 2 day).

Similarly, if you sold the shares on Monday,

you are required to give delivery of the shares on Wednesday (T+2 day).

most brokers charge higher brokerage on Delivery trades versus Intraday Trades.

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