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What is Intraday Trading?

Intraday trading, also known as trading, is buying and selling of stocks within the same trading day. Share prices fluctuate throughout the day, and traders buy and sell the best intraday stocks to profit from them. And traders exploit price changes to their advantage in order to profit within a day.And it's not always the case that traders aim to buy low and sell high within a day, sometimes traders might aim to sell high and buy low for profits as well.

For instance, assume that a stock is priced at Rs. 1000 at the start of a trading day. You identify the stock as one of the best intraday stocks today. So, you buy 200 shares. Within a few hours, the stock price moves up to Rs.1200 due to stock specific announcements or market conditions. You sell the stocks. You will book a profit of Rs. 40,000. Just within a few hours!

Usually, traders use online platforms and technical tools to do intraday trading of stocks. When you purchase a stock for intraday trading, you must mention in the portal that you are doing intraday trading. If you do not sell your positions before the end of the day, your positions will automatically be squared off. However, if you are doing an Speculation in a non-Intraday product then the auto squared off is not applied here.

Benefits of Intraday Trading

Equities
No Overnight Risk
  • Perhaps the most significant advantage of intraday trading of stocks is that it eliminates overnight risk. Overnight risk is the risk that a stock’s price will change while you are away or when the markets are closed. Since intraday trading positions are closed within the same day, there is no overnight risk to take. Profit or loss is limited to the day you are trading the stocks. Therefore, any global or local events that take place overnight will not affect your position.
E-IPO
Possibility for Higher Returns
  • You can profit immensely from intraday trading if you have a smart trading strategy. Choosing the best intraday stocks based on several technical indicators can ensure that you are taking profitable positions. With a reasonable amount of capital, you stand to make a good profit within a day.
Derivatives
Less Time Commitment
If you know the markets well and can place trades strategically, you don’t need to spend too much time on intraday trading. You can enter an intraday stock position and exit it in a few hours.
Mutual Funds
Short Selling
  • You can employ various strategies, including short selling on your intraday stocks. You can short sell your stocks by taking an opposite view and cover the position by the evening. For instance, assume that a stock is priced at Rs. 1000 at the start of a trading day. You identify the stock as one of the best intraday stocks for short selling today. So, you sell 200 shares. Within a few hours, the stock price moves down to Rs. 900 due to stock specific announcements or market conditions. You buy the stock back. You will book a profit of Rs. 20,000. Just within a few hours!

How Intraday Trading Works

Intraday trading allows a trader to take a position in a stock for a day. Using an online platform like Geojit’s Selfie, you can trade in the best intraday stocks. You take a position on a stock based on various technical indicators, and when the price is conducive, you exit the position. This allows you to make a profit. At the end of the day, if you do not close your position, it will be automatically squared off by the Depository Participant or your brokerage firm.

Where To Place Intraday Trades

You can place intraday trades through a broker like Geojit. You will need to choose the intraday segment to proceed with intraday trading. It is advisable that you find a broker or DP who provides you with proper research and technical support.

What Are the Margin Requirements For An Intraday Trade?

As per the guidelines from the Securities and Exchange Board of India, you will need to have a margin of 100% in your trading account to participate in intraday trading. The margin requirement depends on the market volatility, and the exchanges determine it separately for each stock.

How Risky Is Intraday Trading?

Intraday trading is not for the faint-hearted. There is risk involved in intraday trading. This is because prices can fluctuate wildly in a day. If you cannot catch the price movement or forget to close your position, you may find yourself making considerable losses.

Who Should Participate in Intraday Trading?

As an intraday trader, you typically have five to six hours to complete your trading. You should be able to devote time during market hours to be being an intraday trader. Apart from that, someone with a reasonably high-risk appetite, has the market knowledge, can understand and employ technical analysis and is willing to trade with limits can participate in intraday trading. Also, traders has to assure of placing strict stop losses

How To Do Intraday Trading at Geojit?

Firstly, you must open a trading account with Geojit to do intraday trading. Then, complete your KYC requirements. Activate your account, begin intraday trading using your trading account. Need to choose the shares you want to trade in and select the Buy/ Sell option. Don’t forget to choose the intraday or day trade option while placing your order if you need to get Margin benefits.

Brokerage Charge for Intraday Trading

Geojit charges 0.03 % or Rs 20 per order whichever is lower of the total trading amount as intraday trading charges if GtradeMax or GtradeCash is your brokerage plan.

FAQ

Intraday trading and day trading mean the same thing. It involves placing trades to make a profit within a single trading day. Day trading can be done by paying 100% of the transaction value; in this case, the square-off order has to be executed at the client end. However, short selling will be permitted only if you choose the product intraday.


The duration of intraday trading is limited to a single trading day. Regular trading allows you to hold your positions for longer. Also, intraday trading depends on technical analysis. Regular traders may use both technical and fundamental analysis to complete trades.


In India, the market timing for trading is between 9.15 AM and 3.30 PM from Monday to Friday. All intraday positions will have be closed on the same day before 3:15PM. No fresh intraday trades are allowed post 3:15PM. If you are paying the full executed value then its your discretion to close the position at any time as your wish before 3.30


You will need to do your research to find the best intraday trading stocks. Usually, it is best to choose stocks with high liquidity and high volume to ensure that you can close positions comfortably. You can follow the Geojit research desk wherein exclusive Intraday calls are provided.


Frequently Asked Questions(FAQ)

What is the difference between intraday trading and day trading?

Intraday trading and day trading mean the same thing. It involves placing trades to make a profit within a single trading day. Day trading can be done by paying 100% of the transaction value; in this case, the square-off order has to be executed at the client end. However, short selling will be permitted only if you choose the product intraday.


How does intraday trading differ from delivery trading?

The duration of intraday trading is limited to a single trading day. Regular trading allows you to hold your positions for longer. Also, intraday trading depends on technical analysis. Regular traders may use both technical and fundamental analysis to complete trades.


What is the market timing for intraday trading?

In India, the market timing for trading is between 9.15 AM and 3.30 PM from Monday to Friday. All intraday positions will have be closed on the same day before 3:15PM. No fresh intraday trades are allowed post 3:15PM. If you are paying the full executed value then its your discretion to close the position at any time as your wish before 3.30


How to find the best intraday stocks for trading?

You will need to do your research to find the best intraday trading stocks. Usually, it is best to choose stocks with high liquidity and high volume to ensure that you can close positions comfortably. You can follow the Geojit research desk wherein exclusive Intraday calls are provided.