What is Reversal Trade?

The Financial Express Dated 19th December 2015 ran an article called "BSE to introduce auto-cancellation of reversal trades soon". In the article the meaning of Reversal Trade was given as "Reversal of trade implies that for a buy transaction initially entered into by a broker for a particular client for a specific quantity, there is a corresponding sale transaction which takes place during the day for the same quantity between the same set of broker/clients and vice-versa."

Can anybody explain more clearly what it means? You can buy a specific quantity of a stock in the morning and sell the same quantity of the same stock in the afternoon. What is wrong in that?

 

By reversal trade it is meant that when a particular traders is holding long position for some specific quantity at some point of time at the same time a traders is holding short position for the same stock with same quantity.