When Is Intraday Profit Credited? All You Need to Know

Intraday trading aims to capitalise on same-day price movements, but many beginners wonder when profits are actually credited. The timing depends on factors like your broker, trade type, and the exchange's settlement process. Here's what to expect.

Intraday trading involves buying and selling stocks or financial instruments on the same day, with all positions closed before the market ends. Since positions are squared off within the day, no delivery of shares takes place. The goal is to take advantage of short-term price changes, and this same-day cycle also affects how settlements and profit credits are handled.

Your intraday profit is the difference between your buy and sell price (minus brokerage and taxes). Here’s a simplified breakdown:

Formula:

• Intraday Profit = (Sell Price – Buy Price) × Quantity – Charges

Charges may include:

• Brokerage fees
  

• Securities Transaction Tax (STT)
  

• Exchange transaction charges
  

• GST on brokerage
  

• SEBI turnover fees
  

• Stamp duty
  

These deductions are automatically applied by your broker when calculating your net realised profit.

Although intraday trades are completed on the same day, profits are typically not credited immediately after the trade is closed. Here's how it generally works:

Credit Timeline

Consider the following table:

Most brokers credit the realised profits on a T+1 basis, meaning the funds become available in your ledger or withdrawable balance the next business day. However, some brokers may allow margin reusability or trading with unrealised profits, depending on their policy and risk framework.

Even though the trade is squared off on the same day, the final settlement process happens at the exchange level — typically on T+1. Brokers follow this standard to align with the stock exchange’s clearing mechanism.

Key reasons include:

• Exchange rules for settlement cycles
  

• Finalisation of fees and levies
  

• Risk checks and compliance requirements
  

• Reconciliation of trade mismatches (if any)
  

Only after these processes are complete do brokers release the profit to your account.

While the T+1 cycle is standard, actual fund credit policies may vary between brokers:

• Full-service brokers usually credit profits by T+1 evening or early T+2.
  

• Discount brokers may show the amount in your ledger on T day, but restrict withdrawals until settlement.
  

• Instant withdrawal options (offered by some) are limited to already-settled funds, not intraday profits on the same day.
  

Always check your broker’s fund withdrawal and settlement FAQ to avoid surprises.

If your intraday trade results in a loss, the amount is immediately deducted from your available balance. This may impact your margin availability for the next day’s trading. In case of margin shortfall, your broker may restrict trading or issue a margin call.

If losses exceed the funds in your trading account, you may even incur penalties or interest for the shortfall.

You can track the credit of intraday profits via:

• Broker Ledger Statement: Shows when profits are credited as funds.
  

• Payout/Withdrawal Section: Confirms how much of the balance is available for withdrawal.
  

• Contract Notes: Lists charges and net P&L for each trade.
  

• Mobile App Notifications: Most brokers send alerts once funds are credited.
  

If there's a delay beyond T+2, it's advisable to contact your broker’s customer support for clarification.

Intraday profits may seem instant because trades close within the same day, but the actual credit of funds follows the exchange’s T+1 settlement cycle. While many brokers display the net profit on the day of trade, the funds usually become usable or withdrawable the next working day. Understanding this timeline helps traders manage their capital better and plan their trades more effectively.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.