Squaring off is a day trading strategy where a trader buys and then sells an asset, or vice versa, within the same day in an attempt to profit from price differences. For example, a trader may buy 100 shares of a company at Rs. 10 per share, and then sell those same 100 shares later in the day at Rs. 12 per share, pocketing the Rs. 200 - Rs. 10 = Rs. 190 profit. The key aspects are buying and selling the same quantity of the same asset within one day in an attempt to profit from intraday price movements.

1. Definition of 'Squaring Off'
Squaring off is a trading style used by investors/traders mostly in day trading, in which a
trader buys or sells a particular quantity of an asset in the hope of earning a profit.
Definition: Squaring off is a trading style used by investors/traders mostly in day trading, in
which a trader buys or sells a particular quantity of an asset (mostly stocks) and later in the
day reverses the transaction, in the hope of earning a profit (price difference net of broker
charges and tax).
Description: For example: Person A buys 100 shares of Reliance from the BSE Sensex
through a broker for a price or Rs 10 per share. Later in the day, Person A sells all the shares
for Rs 12 per share and by paying broker charges of Rs 10. The net profit A earns is Rs (200-
10)=Rs 190.
Therefore, the trader has Buyingand sellingorsellingandbuyingthe same quantityof sharesof a
companyina day withthe same brokeriscalledsquare off.ie withoutgivingactual delivery/receipt.
The lossor profitdue tothe price diff.lessbrokerage s.tax .etcwill be credited/debitedtoyour
account. Otherconditions1.Share boughtat NSE can be soldat NSE onlylikewise Sharesboughtat
BSE can be soldat BSE only.2.Trade for Trade share(atNational stockexchange) andTgroup,TS
Group and Z groupshares(atBombaystockexchange) are notallowedforsquare off.basically
squared off his position
Bid-offerSpread
The difference between the selling price and the purchase price for investments.
When you ask a broker what price the shares of a company are trading at in the market, he
will quote two prices: the bid price is the price at which you can sell your shares, and the
offer price is the price at which you can buy them. The first is always lower than the second,
and the difference between them is the spread.
Market makers, who act like wholesalers in the stock market, make their profit from the
spread - buying shares at the bid price and selling them at the offer price

2. There are twosituationswhere we use stoplossorders.One iswe have broughtsome sharesand
waitingtosell itina higherprice.Secondone iswe mayshortsell itand waitfora fall andbuythe
same no quantitieswe soldearlier.Iam givinganexample case.
1) For Buy and Sell:
a) ICICIBANKistradingatRs. 280.55 at 10:35 AM. I feel thatprice may go up.
b) So I am buying100 Units at Rs. 280.60 inLimitPrice Mode.My targetis 290 plus.
c) But for a safe side i don't wantto loose more than Rs. 5/- a share.
d) For that I am placinga Sell OrderinStop lossmode.WithSale Price is274.50 andtriggerprice is
274.95.
e) I am choosingthese valuesbecause,Roundvaluesare alwaysstrong.Myguessisif it breaks275 it
may go furtherdown.So I am using274.95 as triggerprice insteadof using275.
f) For sellingprice i have give Rs.274.50, reduced45 Paise fromthe triggerprice.Because whenthe
price fallsto274.95 an sell orderisplacedimmediatlyfor274.50
g) It wouldhelpusif the price reducesfastly.
h) If the price crossesto 290 i wouldhappilycancel the stoplossorderandplace a sell orderfor290
and above.
1) For Sell andBuy:
a) ICICIBANKistradingatRs. 280.55 at 10:35 AM. I feel thatprice come down.
b) So I am Selling100 Units at Rs. 280.60 inLimitPrice Mode.My targetis 270 plus.
c) But for a safe side i don't wantto loose more thanRs. 5/- a share.
d) For that I am placinga Buy Orderin Stoplossmode.WithBuyPrice of Rs. 285.50 and triggerprice
is285.05.
e) My guessisif itbreaks285 it maygo furtherup.So I am using280.05 as triggerprice insteadof
using280.
f) For sellingprice i have give Rs.285.50, Increased45 Paise fromthe triggerprice.Because whenthe
price increasesto285.05 an buyorder isplacedimmediatlyfor285.50
g) It wouldhelpusif the price increasesfastly.
h) If the price drop to 270 i wouldhappilycancel the stoplossorderandplace a buy orderfor 270.