As the name suggests, intraday trading is a trade that is initiated and squared off on the same day. To understand intraday trading, let us go back to the idea of rolling settlements that was introduced in India in 2001. Formerly, the BSE had a system called the Badla (carry forward) while the NSE had a system called the ALBM (Automate lending and borrowing mechanism) where trades could be squared within a week and could still be carried forward beyond that. In 2001, after the Ketan Parekh scam in the stock markets, SEBI introduced the system of rolling system wherein all trades not reversed on the same day will result in delivery on T+2 day. Rolling settlements actually gave rise to intraday trading! In fact, had it not been rolling settlements, this intraday trading would not have taken off in such a big way in India. Since the costs in intraday trading were lower, brokers could offer much lower brokerage charges making it more financial viable for traders.