Table of Contents
- 1 What happens if you sell for a loss on margin?
- 2 What happens if I short a stock for intraday but it hits the upper circuit?
- 3 How many times can you short sell a stock?
- 4 Why am I getting a short delivery in Zerodha?
- 5 Why are my intraday trades not showing up on Zerodha RMS?
- 6 What is the 30 day rule for buying and selling stocks?
What happens if you sell for a loss on margin?
If a margin call is issued and the investor is unable to bring their investment up to the minimum requirements, the broker has the right to sell off the positions and also charge any commissions, fees, and interest to the account holder.
What happens if I short a stock for intraday but it hits the upper circuit?
If you have an open sell intraday position & stock hits upper circuit. If a stock hits upper circuit price, you will have only buyers and no sellers. So you will not be able to buy back the stock sold for intraday. So this intraday trade will end up converting to a delivery trade.
How many times can you short sell a stock?
When an investor or trader enters a short position, they do so with the intention of profiting from falling prices. This is the opposite of a traditional long position where an investor hopes to profit from rising prices. There is no time limit on how long a short sale can or cannot be open for.
How long can you hold a stock on margin?
For example, investors can usually only withdraw cash from a stock sale three days after selling the securities, but a margin account allows investors to borrow funds for three days while they wait for their trades to clear.
Is there any minimum holding period for selling a stock?
No, There is no minimum holding period for selling a stock, infact you can sell a stock almost immediately after you buy it. Buying a stock and selling it within the same day is called as Day trading or Intraday. In Intraday you don’t pay the STT (Securities transaction tax).
Why am I getting a short delivery in Zerodha?
Since you don’t have any shares, you would not be able to deliver and would default, thereby causing a Short Delivery. Now this may not happen with your account at Zerodha because we let you buy/sell equities with 2 product codes: MIS (for Intraday) and CNC (for Delivery).
Why are my intraday trades not showing up on Zerodha RMS?
Now this may not happen with your account at Zerodha because we let you buy/sell equities with 2 product codes: MIS (for Intraday) and CNC (for Delivery). Zerodha’s RMS system will attempt to square off all Intraday trades (bought/sold with the product code MIS) at 3:20 pm even if you haven’t squared it off yourself.
What is the 30 day rule for buying and selling stocks?
30 Day Rule of Buying & Selling Stock. The 30-day rule in the stock market – commonly referred to as the “wash sale” rule – affects the taxable gains and losses on stocks you sell. The purpose of the rule is to prevent you from selling stock for a tax loss and buying it right back.
https://www.youtube.com/watch?v=Dticy7WfFZs