What is Intraday Trading?
Intraday trading refers to buying and selling financial instruments (like stocks) within the same trading day. This means all positions are squared off (closed) before the market closes. The goal is to profit from short-term price movements in a single day.
Unlike long-term investing, where you hold shares for weeks, months, or years, intraday traders focus on fast trades, sometimes within minutes or hours, based on price volatility, technical indicators, and market news.
Example:
If you buy 100 shares of a company at ₹500 in the morning and sell them at ₹510 in the afternoon, your profit is ₹10 per share — all within one day.
Key Features of Intraday Trading:
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No overnight holding: All trades must be closed before the day ends.
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High risk & reward: Small price changes can lead to quick gains or losses.
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Leverage: Brokers often allow traders to trade with more money than they have (margin trading).
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Technical analysis: Charts, indicators (like RSI, MACD), and patterns are used to time entries and exits.
Important Points:
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You need a trading account and must select the "intraday" option while placing orders.
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If you forget to sell your intraday stock, the broker will auto-square it off near market close.
In summary, intraday trading is for those who want to take advantage of daily price fluctuations, but it requires quick decisions, discipline, and proper risk management.