One of the most frequently asked questions is "Can I sell delivery shares on same day?".
For novice investors and traders, the stock market is a mystery since there are numerous confusions when it comes to purchasing and selling stocks. However, if you learn it correctly before beginning the journey, it isn't that tough.
Buying and selling shares on the same day is a common practice in India. However, it should be remembered that this can't be done with every stock listed on the exchanges.
Let's have a look at the answer and related situations with an example.
Can I sell delivery shares on same day?
Yes, you can sell delivery shares on same day. However, this isn't applicable for all stocks listed on the stock exchanges.
The first thing that needs to be considered is the liquidity of the stock. If the stock is not liquid enough and there is no buyer for the stock then you will not be able to buy and sell stocks on the same day.
This happens many times with novice traders that they buy some penny stocks that do not have any liquidity and once they buy the stock they can not sell it because there are no buyers for the stock.
But if you are trading in a stock that has sufficient liquidity then you can buy and sell the stocks on same day without any worries.
If you buy and sell the shares on the same day then the shares will not be transferred to your Demat account and this whole trade will be considered as an Intraday trade.
For example, suppose you have bought some shares of HDFC bank at CNC that is a Cash and Carry trade where you need to pay the full margin for the stocks.
Now if there is any bad news arising for the stock and you decide to sell the stock then you can do so by simply exiting from the stock.
You can also convert your trade from CNC to MIS order. To do so go to the position tab, here you will see your active trades for the day then click on the three dots on the right-hand of the trade that you want to convert. After that click on the Convert option.
Converting your trade from CNC to MIS is a great option because now even if you forget to exit from your trade your broker will exit all your trades at the end of the day.
Can we buy and sell shares on the same day Zerodha?
Yes, you can buy and sell shares on the same day in Zerodha. But the only thing that you have to consider is the liquidity of the stock itself.
If the stock is liquid and there are enough buyers and sellers for the stock, you can easily buy and sell shares on the same day.
What if I sell delivery shares on same day Upstox?
You can sell delivery shares on the same day in Upstox. If you do so your trade will be considered as an Intraday trade rather than a positional or delivery trade.
If you buy and sell delivery shares on the same day then these shares will not be transferred to your Demat account and you will not be charged any DP charges for selling those stocks.
What are the charges of selling delivery shares on same day?
When you sell delivery shares on the same day, this trade is considered as an Intraday trade and hence, only Intraday charges will apply.
In most cases, any intraday charges will be around a maximum of INR 20 per trade. You can go to your broker website and check the Indray charges they put on Intraday trades such as Zerodha, Upstox, and Angel Broking.
Additional taxes on selling delivery shares on same day?
This is the method of computing the Buy average that is used after evaluating trade taxes. Intraday trade is defined in IT Rules as a trade that does not result in delivery from/to Demat account.
All such transactions, according to IT rules are considered Intraday transactions, and only Intraday charges are applied.
If you sell the delivery shares on the same day then this is considered as an Intraday trade and thus, there are no additional taxes.
Intraday and delivery trade should not be combined, since they are subject to capital gains.
Can I sell a stock the next day?
Yes, you can sell a stock the next day, but you have to pay some additional charges as well that applies on delivery trades such as DP charges.
Once you hold any trade for more than one day then that trade will be considered as delivery trade and you are required to pay the additional charges as well as taxes.
To avoid such additional charges, always try to exit the stock before holding it for more than one day.
Conclusions
Buying and selling shares on the same day is not considered a delivery trade. It only results in an intraday trade and you are required to pay Intraday charges.
The Intraday transactions of shares are not considered as delivery transactions and do not attract any additional taxes or DP charges if you sell the stock on the same day.
However, if you hold any trade for more than one day then it will be considered as a delivery transaction and you will be required to pay additional charges as well.
FAQs
Can I sell delivery shares on same day Zerodha?
Yes, you can sell delivery shares on same day in Zerodha. But always trade in a stock that has sufficient liquidity, otherwise you will not be able to sell your stocks.
Can I sell and buy the same stock in the same day?
Yes, you can sell and buy the same stock on the same day. But make your that you do not use the funds that are added to your trading account after selling the stock in any other stocks.
Can I sell delivery shares on same day Angel Broking?
Yes, you can sell delivery shares on same day in Angel Broking without any extra charges.
