How Many Times Can One Buy-Sell Daily in the Stock Exchange?
Trading in the stock market, that is, buying and selling stocks in a short time, can be an attractive method for some investors. However, this method has some risks and rules. The answer to the question of how many times a day can be traded in the stock market depends on these rules.
The most important rule of daily trading in the stock market is that you cannot buy and sell the same stock on the same day. According to this rule, if you bought a stock today, you can only sell it tomorrow. This situation is called the T+1 rule. The purpose of this rule is to prevent speculative movements in the stock market and to ensure the healthy functioning of the market.
However, there are some exceptions to this rule. For example, if you bought a stock today and you want to sell it today, you can. However, for this, you must first have sufficient cash in your account. This situation is called cash-backed trading. In this way, the commission rates may be higher.
Another exception is short selling. Short selling means selling a stock that you do not own and then buying it back at a lower price. In order to do this, you need to get the permission of your brokerage house and have a certain collateral in your account. The T+1 rule also applies in short selling transactions. So a stock that you short sell today can only be bought back tomorrow.
Another issue that investors who want to trade daily in the stock market should pay attention to is tax. 0.5% withholding tax is deducted from the earnings you earn in the stock market. However, this tax only applies to stocks you dispose of in less than 6 months. If you hold a stock for more than 6 months, you do not pay taxes.
Daily trading in the stock market can provide high profits as well as high losses. For this reason, before applying this method, it is necessary to do a good research, market analysis and risk management. In addition, it should not be forgotten that daily trading in the stock market is psychologically challenging.