delivery vs intraday

[ajayguhan]

Hi

If i bought a share in intraday and i want it to be delivered is it possible..?if yes then how will be the brokerage charges…?

if everyone in intraday trading sells their share at the end of day.,who will be owing it till nest day?

Is the closing price of a stock will be same as next day opening price always?if no then how can they change price just like that.....without bids and offer by the traders....?

I’m sorry to disturb you with my amateurs doubts, since I’m new to share market.i have lots of doubts in my mind regarding it.hope you clear it.Thank you

[rmani84]

Yes, you can convert a intra-day position to delivery, if you have a DEMAT account plus trading account ... If you only have a trading account, then you cannot take delivery .... DEMAT is must for delivery in shares i believe ... In Zerodha, this is done by converting order type from MIS to NORMAL ...

If there is a mis-match in shares being sold and bought, shares / cash are returned back to share holders and buyers respectively ... It has happened to me once ... This only happens in low volume stock ... Its not a worry if you trade in high volume reputed stocks ... It has happened once in last 10 years for me ...

No ... Open price is never same as yesterday's closing price ... A lot of things happen globally over-night and the sentiment changes, causing this difference ... And this is purely based on bids and offer ... Time gap changes the bid - offer situation totally ....

Feel free to ask ... Its a pleasure to share and discuss I learned a lot from talking to others about my doubts

[ajayguhan]

When the market closes everyone share will be sold to the exchange and when it begin everyone buys it from exchange.

At the moment market begins every stock just have a price ..ie., (opening price) and it changes based upon the bid and offer after the market open.

Even if something extra ordinary happened, the bids and offer will change drastically changing the opening price., but how can the opening price be change without any bids and offer.

Does the bids and offer are asked before the market open and the opening price decided?

[rmani84]

No, the exchange does not hold any shares ... The exchange only facilitates the exchange of shares between existing holders and new buyers ...

Its the sentiment of buyers and sellers that decides the bids and offers and it changes a lot overnight ...

[AastroGuru]

Hi

If i bought a share in intraday and i want it to be delivered is it possible..?if yes then how will be the brokerage charges…?

if everyone in intraday trading sells their share at the end of day.,who will be owing it till nest day?

Is the closing price of a stock will be same as next day opening price always?if no then how can they change price just like that.....without bids and offer by the traders....?

I’m sorry to disturb you with my amateurs doubts, since I’m new to share market.i have lots of doubts in my mind regarding it.hope you clear it.Thank you

I am also a n00bie, So pardon if anything I say is incorrect.

1st question
You can convert your intra day shares to delivery (MIS to CNC) before the market closes on that day. But to do that you should have enough money in your account to buy the entire shares that you have bought in Intra Day.

For example, you have 2500 rs in your account, and with this money you are going to buy Intraday shares say each share is costing around 230 rs. So in Intraday you are allowed a huge margin (multiplication factor - number of times the money u actually have), For discussion the multiplication factor lets take 9x (9 times), then you are eligible to buy shares worth (2500 x 9 = 22500) rupees. So now, you can buy 97 shares (22500/230=97) roughly.

Now, you have bought 97 shares with 2500 rs only what you have in your account. But since the market price is not as expected, you want to convert these shares into delivery mode (MIS to CNC). Then you need to buy all the 97 shares to keep the shares overnight with you. So you will be needing 97 x 230 = 22310 rupees in your demat account, So all you have to do is transfer additionally some 20000 rupees to your demat account and convert the 97 shares from MIS to CNC.

Normal Brokerage charges for Delivery is also applied along with charges of Intraday I think. I am not sure.

2nd question
Exchange will not hold any shares. Only buyers will hold the shares. In intraday, if someone is selling the share, then someone is buying the share also. He may buy for the purpose of Intraday or keep it with him as Delivery. So everytime a share is sold, someone is buying it.

If no one is ready to buy, then you put a sell order, your order may not execute and will wait till it finds a buyer who wishes to buy from you at or above your quoted price.

For high value scrips (companies) this will not happen, as mostly people will always be there to buy or sell.

3rd question
The opening price of today will not be the same as closing price of yesterday. This is because of something called Pre Market Orders and After Market Orders.

In premarket orders, people sell off their delivery shares after 3:30 pm (before 4 pm) if they fear share price will go down the next day, mainly because of fear of some bad result that might come overnight when the company announces its result.

In aftermarket orders, from today's evening say after 5 pm to next day market opening at 9 am, people place orders to either buy or sell, MIS or CNC. The exchange say NSE will collect all this information from 9:00 am to 9:07 am next day morning and fix the opening price around 9:08 am based on all these bids for buy or sell. Limit orders which are matched with buyer quote and seller quote are confirmed and matched after 9:08 am to 9:15 am, Remaining orders which are unmatched are pushed to regular market which starts after 9:15 am. More information is given on NSE website or google for paper PRE OPEN SESSION IN INDIAN STOCK EXCHANGES: A VIEW by Sathish kumar.

Hope these answers are Ok for you.