Understanding Share Positions Post-Sale in Upstox: A Comprehensive Guide
If you have recently sold your shares in Upstox but still see positions in your account, you might be wondering why. This comprehensive guide will help you understand the reasons behind this inconsistency and how to address it.
Reasons for Continued Share Positions After Sale
Several factors can cause your shares to still be shown in your Upstox account after you have sold them. Let's explore these in detail:
Settlement Period
In the Indian equity market, there is typically a settlement period of T2 days after a trade is executed. During this period, the transaction is not yet finalized, and the shares may still appear in your holdings. This is a standard process to ensure accuracy and prevent fraudulent trades.
Pending Transactions
If you recently sold your shares, the transaction might still be pending. The system has not yet updated your positions, so the shares might still be listed as active. This can happen if the transaction is complex or if there are network issues.
Partial Sale
Another reason could be that you sold only a portion of your holdings. The remaining shares will still be displayed as positions. Make sure you check your transaction records to confirm that you have sold the desired number of shares.
Technical Glitch
Upstox's trading platform can occasionally experience technical issues that can cause discrepancies in the displayed positions. If the issue persists, it might be best to contact Upstox customer support for further assistance.
Different Account Types
If you have multiple accounts, such as a margin account, make sure to check the correct account for your holdings. Sometimes, the issue might be with the wrong account balance being shown.
Advanced Trading Scenarios: Intraday Trading in Upstox
In certain trading scenarios, you might see your shares listed in your positions even if you have a completed sale. Let's take a closer look at these advanced trading scenarios:
Possible Reasons for Showing Positions After Sale
Even if you have sold your shares, you might still see them in your positions if you have not squared off the position. This means that the transaction is still marked as open in your account until you close it. For instance, if you initiated a sell order at 10:30 AM but did not close it by the end of the trading day, the shares will still be reflected in your positions.
Converting Sale to Intraday Trade
By using an intraday trade, you can more effectively manage your trades and lock in profits. Here's a scenario to illustrate this:
Example Scenario:
Imagine you purchased 10 SBI shares at a price of ?50 each. By mid-afternoon, the price had risen to ?100. You decided to sell your 10 shares at ?100, making a profit of ?500 (?100 - ?50 * 10 ?500). In Upstox and similar platforms, your sell or buy will reflect in your positions.
If the price of SBI shares dropped back down to ?90 by the end of the day, the shares you sold will still show a profit of ?100 per share in your positions. This is because you sold them at ?100 and the price is now ?90.
The equation to calculate the profit is:
Sell Price - LTP x No of Shares
You can now exit your sell position by selecting the line and exiting. This will return the shares you sold to your portfolio, and the profit will be added to your account. Essentially, you've converted a delivery trade into an intraday short sell.
Key Points to Note
Your average purchase price will not change, as this is derived from your initial buy transaction. You can perform this strategy multiple times, especially when the market is down. You can sell shares with high potential and buy them back later, except on Thursdays.Conclusion
Understanding why your shares might still be shown in your Upstox positions after a sale is crucial for effective trading. Whether it's due to a settlement period, a pending transaction, or an advanced trading strategy like intraday trading, knowing the cause will help you take appropriate action. For any persistent issues, don't hesitate to reach out to Upstox customer support for help.
Frequently Asked Questions (FAQs)
What is the Settlement Period?
The settlement period in the Indian market is typically T2 days, allowing for the finalization of transactions and ensuring accuracy.
Why do Pending Transactions Affect My Position?
If a transaction is pending, the system has not yet updated your positions, leading to the shares still being shown as active in your account.
How Can I Convert a Sale to an Intraday Trade?
To convert a sell order to an intraday trade, simply exit the position before the market closes. This will return your shares to your portfolio and lock in the profit or loss.