Fashion enthusiast | Posted on 31-Aug-2018 | Share-Market-Finance

What is Intraday Trading in share market?

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News reporter (CEN News ) | Posted on 4-Sep-2018

There's only one difference between a regular trade and intraday trade which lies in taking the delivery of the stocks.

In Intraday trading, you square-off your positions the same day. And due to this, your sell order offsets your buy order. This ensures that there is no transfer of ownership of shares. A regular trade gets settled over a span of days, if not longer. So, you get delivery of the shares you bought while the shares you sold move out of your demat account.

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Rana zian

Blogger | Posted on 2-Nov-2018

Meaning of Intraday Trading

Intraday trading means the system where traders has to buy and sell financial instruments (i.e. Equity, F&O) on the same day. Intraday trading refers to the practice of buying and selling shares with in the same trading day, such that all positions are closed before the market close for the trading day. It also referred as day trading by many traders.

How Intraday Trading Works?

For Example, Mr. Raut have bought 100 shares of ABC Limited during the open market hours, and then Mr. Raut has to sell the same no. of shares of ABC Limited before market closure. Same is the case when trader has sold the shares, then he compulsorily has to buy the same quantity of the stock that are sold earlier.

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When the trading is done trough online platform, the trader has to specify that it is intraday transaction while placing the order. However, in case of a buy transaction trader get one option if he wants to convert his intraday position in to delivery, he can convert it before market gets close.

As, Intraday trading is riskier in compare to positional trading, Stop loss is very important part for day trading.

Stop Loss

Stop loss level state the maximum risk which was decided before entering the trade. If the trade hits the stop loss it means that you have to square off your positions. As mentioned earlier stop loss is the most important level of disciplined trading. You should strictly follow if you want to get success in day trading.

Benefits of Intraday Trading

Brokerage charges are very less than delivery segment

High Margin available for intraday trading

Intraday trading prevents overnight risk

Both options are available for day trading one is Buying and Selling stocks on the same day and other is Short selling.

Day trading provides immense learning opportunities to the trader. The trader can learn new techniques and strategies while taking Intraday Positions.

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Rohan Chauhan

Financial analyst (Mudra finance company) | Posted on 31-Aug-2018

Share Market, as it is obvious, is prone to fluctuations. Shares keep rising and falling. Hence, share market has its own rules.

Now coming to your question, as to what Intra Trading is, it is obvious from the name itself. The term refers to the trading happened within the span of one day. The amount of buying and selling that took place in one day, the information of this is what we call Intraday Trading.

So in this type of trading, the stocks are purchased not with the intentions of investment but with the purpose of earning profit quickly. Thus, the fluctuations in the prices of the stocks are harnessed to earn profits from the trading of stocks.

Advantages of Intraday Trading:

• In this kind of trading, the risk is only of a day. It makes bidding money in share market easier for you, as the risk you have to bear is just for one day.

• The second point is related to the first one itself. In Intraday Trading, you can know about your profit or loss very soon, as the game is only for one day. There’s no waiting in Intraday Trading.

• There is a prospect of daily income in this type of trading. It’s like freelancing. Working from home, investing, and getting daily incomes.

• It ensures huge returns and hence is highly popular.

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