Same-day Substitution

Posted in Finance, Accounting and Economics Terms, Total Reads: 465
Advertisements

Definition: Same-day Substitution

Same day substitution is the process of withdrawing a specific amount of money from the margin account and adding the same amount before the close of the day. Thus, there is no overall change in the balance amount in the account.


A margin call does not get generated when same-day substitution is made. Same-day substitution can also happen when the fall in market value of a stock is compensated by the rise in another stock’s market value.


For example if an investor loses INR 500 in company X’s 100 shares but is compensated by increase in company Y’s 50 shares by INR 500; a same-day substitution will be said to have occurred.

 

Search & Explore : Management Dictionary

Browse the definition and meaning of more terms similar to Same-day Substitution. The Management Dictionary covers over 7000 business concepts from 6 categories.

Advertisements



Share this Page on:

Similar Definitions from same Category: