Intraday Trading

The buying and selling of stocks on the same day before the trade market closes is Intraday Trading. It is the best available short-term trading method among all forms of trading.

Understanding Intraday Trading

Firstly, let’s answer the most-asked question. Are ‘Day trading’ and ‘Intraday trading’ the same? Yes. Both are synonymous.

Due to constant fluctuation in the price of a particular stock based on supply and demand, the traders look for growth stocks that have higher profit value. If a trader wants to choose Intraday, it has to be stated and specified before the trade, through the platform on which the trade happens.

The same number of stocks is bought and sold on the same day: from the time the market opens to the time the market closes. In Intraday, it is all about when you buy, what you buy, how much you buy and when you sell.


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Difference between delivery trading and intraday trading

The basic principle of these two types of trading remains similar. The difference between intraday trading and delivery trading lies in the option of time taken to close the trade and in the option of taking the delivery.

In intraday, the stocks need to be sold before the market closes on the same day. Even if it is not sold, the broker will close the trade and square off against the market closing rate for that particular stock. You don’t get to own the stock the next day.

In delivery trading, you get an opportunity to keep the stocks you bought until you wish to sell it off. If a stock’s value is constantly growing, traders tend to buy and keep it for a while to sell it off later with a higher profit margin.

Depending on the platform, there is also an option to convert from Intraday to Delivery without any additional charges. With the only condition that the entire stock’s value needs to be deposited to your account, the conversion from Intraday to Delivery can be processed. The 100% deposit will act as a security against the conversion and will not be deducted. 

Advantages of Intraday Trading

  • There is no delivery charge applicable as you don’t own a stock
  • Profits can be made in short time
  • Smoother process and execution of orders
  • Potential for higher returns
  • Lower commission fees

Disadvantages of Intraday Trading

  • Constant monitoring is required for reaping profits
  • Like profits, losses are also multiplied
  • Unpredictable in nature

How to monitor Intraday Trading trends?

Amid various effective ways to monitor intraday trends, two important indicators always stand out: Moving average and Bollinger Bands.

  • Moving Average: It represents the average closing rates of a stock. For finding a reliable average, one has to look into at least a 5Y range.
  • Bollinger Bands: It consists of three elements: moving average, the lower limit and the upper limit of a particular stock.

How to start Intraday Trading?

  • Create your Trade and Demat account
  • Select the right platform
  • Pick the right stock
  • Choose the amount of your choice
  • Monitor the market closely
  • Stay proactive
  • Set a profit target and close the trade
  • Limit your loss to the minimum
  • Close the trade from your end

You can start Intraday Trading, by opening your free account in just 4 minutes. Join the best site for Intraday Trading in just 4 minutes.

FTD bonus- 5% of total deposit can be availed upon FTD

Campaign bonus- Get 10% of winnings of Demo ID upon FTD

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