What Is Intraday Trading? Complete Beginner Guide
Introduction Intraday trading is popular among beginners because it promises quick profits. However, without proper knowledge, it can lead to heavy losses. In this guide, we explain what intraday trading is, how it works, and whether beginners should try it. What Is Intraday Trading? Intraday trading means buying and selling stocks on the same day. All positions must be closed before the market closes. Traders aim to profit from small price movements during market hours. Intraday trading is also called day trading. How Intraday Trading Works In intraday trading: You buy a stock in the morning You sell it the same day No position is carried overnight Brokers provide leverage, allowing traders to trade with more money than their actual capital. While leverage increases profits, it also increases losses. Intraday Trading Example Suppose a stock is trading at ₹500. You buy 100 shares at ₹500 Price rises to ₹505 You sell the shares Profit = ₹500 (before charges) If the price falls, los...