Why do stocks sold from my holdings show up as a negative position and P&L changes on Kite?
When stocks are sold, they are debited from the demat account at the end of the day. The stocks sold can be bought back by the end of the day. Such trades are considered intraday trades and are popular among active traders. Showing stocks sold during the trading day in the positions window helps traders who are looking to buy back the stock. The quantity of the stock shows as negative in the positions window and reduces from the holdings page to indicate that these stocks have been sold.
This stock sold position is greyed out and has a tag called
on Kite. Stock are debited from the demat account by the end of the day if they are not bought back.
Why do I see the P&L change of the stocks sold?
Active traders who decide to buy back the sold stocks do it based on the P&L of the position from the selling price. As a trader, the strategy may be to earn by selling the shares at some point of the day and buying it back at a lower price.
- Sold 1 share of ICICI Bank at ₹320 as shown in the image above.
- If the price goes down to ₹316.35, the profit will be ₹3.65 (1% of your holding value) if the shares are bought back. The holdings remain intact.
Traders can make a loss if the market goes against them, from the time they sell the shares. The live P&L is shown for stocks sold as well to help traders track their position and decide if the stock needs to be bought back.