A style of trading where securities are bought and sold within the same trading day to capture short-term price movements.
Intraday trading, also known as day trading, involves buying and selling stock or derivative positions within the same trading day. All positions must be squared off (closed out) before the market closes for the day at 3:30 PM.
Intraday traders aim to profit from small, rapid price fluctuations in highly liquid stocks. To amplify returns, brokers offer leverage (margin), allowing traders to buy positions worth up to 5x of their cash balance. Any open positions that are not manually closed by the trader by 3:15 PM are automatically squared off by the broker's system.
Intraday trading offers the potential to make quick profits without carrying overnight risk (like negative global news affecting stock opening prices the next day). However, it requires intense discipline, deep knowledge of technical charts, and strict risk control because leverage can magnify losses just as quickly as profits.
You identify a breakout on Tata Consultancy Services (TCS) at 10:30 AM at ₹4,000. You buy 100 shares using intraday margin (needing only ₹80,000 instead of ₹4,00,000). At 2:00 PM, the price hits ₹4,050. You sell all 100 shares, capturing a profit of ₹50 per share, making a total intraday profit of ₹5,000 (minus brokerage and taxes).
Statistics show that over 90% of retail active day traders lose money. Beginners should practice intraday trading extensively in a virtual simulator like Arthhwise to develop execution speed and discipline before using real cash.
The first hour (9:15 AM to 10:30 AM) and the last hour (2:30 PM to 3:30 PM) are considered the best times due to high volatility and trading volumes.
Practice trading stocks with live NSE/BSE market prices and ₹10,00,000 in virtual capital on Arthhwise.
Download Free Android AppSimulated trading that allows investors to practice buying and selling securities without risking real money.
An investing style where bought stocks are held for more than a day, transferred into a demat account for long-term hold.
The projected price level of a stock as stated by an analyst or trader, representing the exit point of a profitable trade.