What is Intraday Trading in Stock mkt

Intraday trading, also known as day trading, is a style of trading in the stock market where buying and selling of stocks are completed within the same trading day. The goal is to profit from short-term price movements in a single day.

Key Features of Intraday Trading:

No overnight holdings: All positions are squared off (closed) before the market closes.

High risk, high reward: Because of market volatility and the use of leverage, profits can be high—but so can losses.

Leverage: Traders often use borrowed funds to increase the size of their trades, which magnifies both gains and losses.

Technical analysis focused: Intraday traders rely heavily on charts, patterns, and technical indicators rather than company fundamentals.

Time-sensitive: Requires constant monitoring and quick decision-making during market hours.

Example:

A trader buys 100 shares of Company X at ₹500 each at 10:00 AM.

The stock rises to ₹520 by 3:00 PM.

The trader sells all 100 shares, making a profit of ₹2,000 (excluding brokerage and taxes).

Want to know strategies or tools intraday traders use?

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