Intraday Profit Settlement

Have you made profits in intraday trading and wondering when it will be credited? Don’t fret as in this article we will talk all about intraday profit settlement.

The intraday profits are not credited immediately and take some time to be credited.

In fact, it follows the specific intraday trading rules according to which the profit is settled after T+1 day. This means that if you execute your trade today, your profit will be credited tomorrow after 3:30 pm.

Let us understand the process of intraday profit settlement in a detailed manner.

Intraday Profit Settlement Time

Intraday trading is the buying and selling of shares on the same day. Although there are various advantages of intraday trading, one thing often confuses the traders as to when the profit that they generate will be credited to their accounts. Although the shares are bought and sold on the same day, the profit is not credited on the same day.

So when will the intraday trading profit be credited to your account?

According to the recent guidelines issued by the Securities and Exchange Board of India (SEBI), the profits made in intraday trading are credited in T+1 days. This means that the next day when the market session ends you will receive your intraday trading profits.

Suppose Anandita has a Demat account with Choice and she bought 1000 shares of ABC company at a price of ₹200 per share on September 27th, which was a Monday. The prices of the same increased to ₹220 per share at 12 noon on the same day. Looking at the great gains, she sold all the shares on the same day.

Thus, making an intraday profit of ₹20,000. Since the trading day is Monday, according to the T+1 settlement rule, the profit will be credited to Anandita on Tuesday.

So, if you are trading on a Monday, the profits will be credited on Tuesday. If you trade on Tuesday, your profit will be settled on Wednesday, and so on.

But what if you traded and earned a profit on Friday?

OR

You traded on Monday, but Tuesday is a holiday?

There can be similar questions that often arise when you are waiting for your intraday profit to get credited. Let us look at some of the scenarios that can arise in such situations.

Case 1- Trading on Friday

So, if Anandita bought 1000 shares of the same ABC company and at the same price but on a Friday. Since the next day, there is no active market session. When will be the profits credited in such a case?

So, in that case, the profit is credited at the end of the market session on Monday. So, if Anandita traded on 27th September and it is a Friday, her profits will get credited on September 30th, i.e Monday after 3:30 pm.

Case 2- Trading on a day before a Share Market holiday

If Anandita traded on a day before a holiday and earned great profits, then what? Suppose she trades on November 3, and there is a holiday on 4th November. In this case, she will get the profits credited on 5th November after the market session.

So, to sum up, all the cases.

Conclusion

Intraday trading profit settlement is done according to T+1 days rules as prescribed by SEBI. So, in case you make money in intraday trading before a day off as well, your profit will be credited whenever the next market session ends.

So, if you are also looking to make subsequent profits in intraday trading, open a Demat account today and start trading!