Please help me in buying and selling of shares (type of order).?



I had 10 PNB shares in my demat ac. i checked (allcated ) those share for sale. Then filled the sell order form. while filling this form one has to choose from delivery or intraday. By mistake or better is by ignorance i chose intraday option instead of delivery. As result my broker SBICAP securities purchased 10 more share at highest value and sale those share at market price. And my demat share were as it is. is it the procedure and rule please explain me as well as what is intraday . Thanks.

2 Replies to “Please help me in buying and selling of shares (type of order).?”

  1. Different types of Share trading

    Day trading and Delivery trading (it is also called as investing) are the two main types of share trading.

    ¨ Day trading
    Buying and selling of shares on daily basis is called day trading; this is also called as Intraday trading.
    Whatever you buy today you have to sell it today OR whatever you sell today you have to buy it today and very importantly during market
    hours that is between 9.55 am to 3.30 pm (Indian time).
    In day trading, brokers provide margin to do trading. Means you get extra amount for day trading.
    Suppose if you have 10,000 rupees in your account then you can buy and sell shares worth rupees 40,000(four times more – basically
    margin amount depends on your broker).
    So if you use margin amount for day trading then you have square off your shares before market closes irrespective of share price or
    whether you are making loss or profit.

    Please note – If you don’t use margin amount and trade only with your available amount then no need to square off your positions.
    For example if the you buy some shares and the share prices falls then you can hold them and take delivery and sell them whenever the
    share prices increases.

    Important note – New comers should not start by day trading as it is very risky.
    Day trading requires lots of knowledge including share, entire share market, global markets, news and many more parameters.
    For more information please visit at Day Trading Training

    ¨ Delivery Trading
    In Delivery Trading, as the name say, you have to take the delivery of shares and after getting these shares in your demat account you
    can sell them at anytime (or you can hold them till you want, there is no restriction).
    In delivery trading you need to have the amount required to buy share in other words you don’t get margin amount as you get in day
    trading
    For example – If you want to buy 10 shares of Reliance at price 1200 than you must have (100×1200) Rs 12,000 in your account; once
    you purchased these shares will get deposited in your demat account (after trading day and 2 additional days). Then you can sell these
    shares when the price of these shares goes up or else you can hold them as long as you want.

    Please Note – First you have to buy and sell. You can’t sell before buying in delivery trading while it’s possible in day trading which is called as short selling.


  2. There are two type of people who come to the markets:
    1. Intraday Traders
    2. Investors

    A intraday trader usually comes in the stock market to make money from the price movements of the stock prices on a particular day. At the end of the stock market, i.e. at 3.30 he will hold no share position in his account. WHich means he will neither have any stocks to give to the exchange, nor will he receive any stock. He always squares-off his position before the closing ofthe market. Net position zero.

    So in Online Trading software, most of the stock brokers keep the intraday option by default in their system. SO at the end of the day, if you have bought any stock, it would be sold and if you have sold something, it will be bought. So that your net intraday position is zero, and you only have to give or take the difference of buy and sell to your stock broker.

    2. Investors: Investors come in the stock market to purchase shares of a company and keep it for a longer term. They dont want to trade only for the day adn want delivery of their shares if they have purchased any share. Or if they have sold shares, they give the stock brokers those shares for delivery and get the money of sale in return.

    SO since your software had the intraday option selected, your shares were automatically purchase by your software.

    Ideally SBICap person who had opened your account should have given you details and told that intraday is selected in it, and your position will be squared-off. But he didnt and you were not aware, so you should also put a complaint with the company.

    I opened my trading account with Arihant Capital Markets, and during the demo of online trading product, they clearly explained me about the indraday adn delivery options.





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