daytrading & intraday trading

[vesa50]

Hi , some stupid questions, because I am new to this.
I heard a day trade (having low brokerage) involves buying shares and then reselling them result being = 0 shares held at end of day.
Is this also true of reverse situation ie you sell say X shares and buy them back the same day (assuming positive issue!).
Is the brokerage still the same?
And if you bought back larger/smaller number what happens. Finally can one day trade using a "normal" internet trading account or you need a special account.
Thanks for the info if you can answer...

 

[theonedevil]

Hi , some stupid questions, because I am new to this.
I heard a day trade (having low brokerage) involves buying shares and then reselling them result being = 0 shares held at end of day.
Is this also true of reverse situation ie you sell say X shares and buy them back the same day (assuming positive issue!).
Is the brokerage still the same?
And if you bought back larger/smaller number what happens. Finally can one day trade using a "normal" internet trading account or you need a special account.
Thanks for the info if you can answer...

Usually in a intraday trade brokerage is 10 times less as compare with the delivery trading....Every broker provide the facility of intraday trade it is the choice of the client if they want to take the delivery of there stocks.

 

[pleaseharsh]

Hi , some stupid questions, because I am new to this.
Thanks for the info if you can answer...

I heard a day trade (having low brokerage) involves buying shares and then reselling them result being = 0 shares held at end of day.
Is this also true of reverse situation ie you sell say X shares and buy them back the same day (assuming positive issue!).
both the above cases r of intraday trading ...first one is called long buying..
and second one is called short selling...
Is the brokerage still the same?
yes
And if you bought back larger/smaller number what happens. Finally can one day trade using a "normal" internet trading account or you need a special account.
no the qty u buy u must square off by selling the same qty ...or the excessive qty will result into delivery ...and for squaring short selling atleast the qty should be equal to short sell qty...for e.g if u short sell 100 reliance..then u need to buy back atleast 100 at the end of day or will lead to auction if u dont have delivery in yr demat a/c...if u buy 120...100 will get squareoff and 20 will get into as delivery provided u not selling that extra 20 on the same day....
i hope u got the things clear..
u need normal online a/c for trading from yr broker...

....................

 

[kakajacksparrow]

Hi , some stupid questions, because I am new to this.
I heard a day trade (having low brokerage) involves buying shares and then reselling them result being = 0 shares held at end of day.
Is this also true of reverse situation ie you sell say X shares and buy them back the same day (assuming positive issue!).
Is the brokerage still the same?
And if you bought back larger/smaller number what happens. Finally can one day trade using a "normal" internet trading account or you need a special account.
Thanks for the info if you can answer...

The 'reverse situation' that you refer to is known as short-selling.The brokerage actually depends upon your broker.Mine(Sharekhan) charges 0.05% on both sides i.e buying and selling for intra-day trades.

Now lets say that you short-sold 100 shares at the beginning of the day.So, by the end of the day, you have to buy back 100 shares.Like you say, 2 scenarios can be possible here.
i>You buy back more than 100 e.g 120
ii>You buy back less than 100 e.g 80

For the first case,out of the 120 shares,100 shares will be given back to the lender,in this case your broker,whom you'd borrowed from.For the balance 20 shares you can decide to either sell them or you can choose to have them delivered to your demat account.For delivered shares,the brokerage will be different.In my case it is 0.5%.
For the second case,if you buy back only 80 shares,you will incur a penalty for having sold something which you did not possess.

There are a number of related threads on this forum from which you can expand your knowledge,related queries from other members and their answers.Try searching appropriately.
Please go through http://www.traderji.com/beginners-guide/9373-new-members-please-read.html.
I'm sure it'll help.

Cheers!