Why are sold shares bought back on the same day?

When you sell shares using the Intraday option instead of the Longterm option, you are participating in intraday trading, where all positions must be closed within the same trading session. By selecting intraday, it indicates that you intend to sell and buy back the same shares on the same day. This creates an intraday position that must be squared off before the market closes, ensuring that no open trades are carried forward to the next trading day.

If you do not manually square off the position by buying back the shares before market close, Carbon will automatically square it off for you. However, this auto square-off comes with an additional charge—typically ₹50 + 18% GST + charged by 021 Trade. This fee can be avoided if you complete the trade yourself within the trading session.

For example, if you sell 100 shares of Company ABC in the morning using MIS, you must buy back those shares before 3:20 PM to complete the intraday transaction. If you fail to do so, 021 Trade will automatically square off the MIS position, ensuring that all intraday trades are closed and no open positions remain after market hours.