Hi,
What will be profit/loss in the following scenario?
Day 1:
Buy price of Stock X: 3000/-
Quantity: 1
Order Type: CNC
Day 2 → Time 9:25 AM
Sold Stock X at 3100/-
Quantity: 1
Net profit: 100/- at 9:25 AM
Day 2 → Time 2:00 PM
Price came down at 2910/- (At POSITION tab, it will show +190/- as potential saving of money as I had exited from the stock)
Again purchased the same stock at MIS @2910/-. Quantity:1
Converted the stock to CNC
Stock X Closed at 3010/- on Day 2
Question 1: What will be net profit or loss at the end of Day 2?
Day 3 → Time: 9:25 AM
Sold the stock again @3100/-
Question 2: What will be the total profit from the stock at the end of Day 3 for all the 3 days combined?
Thanks
On day 2, as you have sold and bought back the share in same day, it’ll be considered as intraday trade and you will have profit of Rs. 190 per share.
Since this is intraday trade, it will not change average price of your holdings. So when you buy the shares back in day 2, the buy price will be 3000 only (buy price on day 1) not 2910.
Please check this support article for more details:
Day 3, you will make profit of Rs. 100 per share.
The total P&L will be 290 per share, considering 190 intraday profit on day 2 and 100 on day 3.
1 Like
Thanks for your answer.
Everything makes sense to me except Rs 190/- profit at Day 2
Let me elaborate:
Day 1 → Buy @3000
Day 2 → Sold @3100
Day 2 → Buy @2910
Day 3 → Sold @3100
Profit on Day 3 → Buy price on Day 1 – Sale Price of Day 3 → 3100 – 3000 = 100/-
As you said, it will not change the holding average, do you mean the activity on day 2, that is, selling at 3100/- and buying back @2910 will act as short sell and thus the profit of Rs 190/-?
Profit on Day 2 → Sale Price on Day 2 – Buy price on Day 2 → 3100 – 2910 = 190/-
Thanks again.