- ‘Within the same day’ is what intraday entails.
- Intraday dealing occurs when a trader buys and sells a stock on the same trading day.
- The Indian stock exchanges are open from 9.15 a.m. to 3.30 p.m.
- As a result, all intraday trading occurs during this time span.
- Stocks are exchanged for gains rather than as a long-term investment.
Intraday trading, also known as day trading, refers to the buying and selling of financial instruments like stocks, ETFs, or options within the same trading day. The goal is to profit from short-term price fluctuations by closing all positions before the market closes.
Here’s how Intraday works:
- You buy a security in the morning.
- Throughout the day, you monitor the market and look for opportunities to sell it for a profit.
- If you don’t sell by the end of the trading day, your broker will automatically square off your position, which means they will sell it for you.
Key differences between Intraday and Regular Trading:
- Holding period: In intraday trading, you don’t hold the security overnight. In regular trading, you can hold it for as long as you want.
- Delivery: Intraday trades don’t involve delivery of the security. In regular trading, the security is delivered to your Demat account if you don’t sell it before the settlement date.
- Risk: Intraday trading can be more risky than regular trading because of the short-term nature of the trades and the higher leverage often used.
Before considering intraday trading, it’s important to remember:
- It requires significant knowledge and experience of the market.
- It can be stressful and time-consuming.
- There is a high risk of losing money.
If you’re interested in learning more about intraday trading, we recommend doing your own research and talking to a financial advisor.