Intraday trading is the process of buying and selling shares within the same day.
Intraday trading, also known as day trading, aims to take advantage of price changes in the market over a short period of time. The volatility in the market is leveraged to generate profits in trading. Quick trades are made with the aim of profiting from small price fluctuations. Intraday trading is based on data, charts, and real-time market data. Traders settle all their positions when the market closes.
The main difference between regular trading and intraday trading is in the handling of stock delivery. In intraday trading, where shares are bought and sold within the same day, the crucial difference is that ownership of the shares is non-transferable. During regular or delivery trading, you can keep the purchased shares for a long time. The shares you buy are credited to your demat account and you can sell them days, weeks, months, or even years later. While regular / delivery trading becomes a good long-term investment option, intraday trading pays off in the short term.
Advantages of intraday trading
Advantages of intraday trading
Market knowledge: It helps to increase the market knowledge of newcomers in trade and investment.
Low rates: Brokerage charges for intraday trading are low compared to delivery trading.
Avoid Overnight Impact: The most important advantage is that overnight negative changes in the market will not affect the positions.
Intraday trading requires thorough research and knowledge to be successful. If you have the right strategy, discipline and training, you will definitely reap the benefits.