What are the features of Intraday trading?

Intraday trading is the process of selling and buying of stocks on the same trading day. It is more famously called day trading or square off trading, which means that all of the trader’s orders will be squared off before the day ends. There are two types of trading, either on the long side or on the short side. It means that a trader can purchase a stock on a particular day and sell the stock on the same day, with the expectation that the asset’s value will rise. The alternative to this is that a trader can sell the stock first and buy it back before the close of the trade on the same day. After a trader has understood the intraday trading meaning the traders will be able to get high margins, compared to the investors, intraday trading will also have a high return potential. The free intraday trading option offers low brokerage charges. It might be beneficial for beneficial for traders to understand what is nse and bse before getting into trading.

After a trader has understood what is intraday trading, and how it functions they can benefit from the market fluctuations during the day. The profit or loss is realized on the same day. Traders can use the intraday trading to their advantage if they wish to gain from the trade opportunities on the same trading day without delivery of shares. A trader can create a buy position by paying a fraction of the transaction value. If a trader purchases a buy position by paying a fraction of the transaction value. After understanding the intraday trading meaning traders can buy stocks and their prices increase on the same day, they can sell and book profits using these products. This is called the square-off order.

Some of the features of Intraday trading are listed below:

1.    Intraday trading was introduced for traders who wish to round up their positions on the same day.
2.    Intraday trading should be done with a strict-stop losses and the profit targets.
3.    An intraday trader should preferably have immense knowledge about the charts and technical.
4.    If a trader has understood the intraday trading meaning, they will need a demat account for trading intraday.
5.    The brokerage charges on intraday trading are low than on delivery trades.

To begin intraday trading, a trader would have to open a trading and demat account. If they have already began with stock market, they may want to open a separate account for intraday trading. Traders can then sign up for the right tools which help with the intraday trading. After a trader has understood what is intraday trading, they can move on to looking at daily charts for identifying the trends in the price movement. With the use of these tools, traders can easily gain profits through trading.

Intraday trading promises high returns and hence they sound attractive. But it also carries a great amount of risk when compared to the delivery segment. So, if the trader has a day job which requires full attention for most of the trading hours, they may want to avoid intraday trading.

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