Can I use intraday profits to take new positions?
No, you cannot use intraday profits to take fresh positions until they are settled (till T+1). For example:
| Particulars- Trade on Monday | Amount/Quantity |
|---|---|
| Stock Name | SBIN |
| Buy Quantity | 1000 |
| Buy Value | Rs. 4,00,000 (Rs. 400 per share) |
| Sell Quantity | 1000 |
| Sell Value | Rs. 4,20,000 (Rs. 420 per share) |
| Intraday Profit | Rs. 20,000 |
Here, the intraday profits of Rs. 20,000 earned on Monday will be available as margins to take new positions or for withdrawal only after settlement of the trade i.e., Tuesday (T+1).
On the other hand, margins used to enter the intraday trade will be released on Monday itself.
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