Why do we need to close the intraday position on the same day? Is it mandate?

[Sangeetha]

Because the exchange makes the settlement on the same day after 3.30pm so it is mandatory to close the position on the same day.

[suguna]

we have to close the intraday positions on the same day as the exchange has to do the settlements after 3.30 pm.It is mandatory for the short position

as we have to buy back the shares to avoid penalty

[S.Sivaraman]

if we had a short position – we need to close the position to avoid penalty as the exchanges settle it on a everyday basis. some brokers close the positions automatically

if we had a long position –  not mandatory to close the position but leaving it open can result in losses if the trend changes over night.

[Vignesh]

YES, intraday positions has to be closed by 3:30,

[Muthu Kumaran]

If your trade entry is based on intraday analysis then it is better to square off the position on the same day.

Long position – Not mandatory. The market may go opposite to the analysis

Short position – Mandatory. If not closed then a penalty will be charged

 

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