InvestorQ : What is the essence of intraday trading in India?
Ria Jain made post

What is the essence of intraday trading in India?

Answer
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1 year ago


Intraday trading essentially refers to a trade where both sides are executed on the same day. For example, you can both buy a stock and then sell on the same day. Alternatively, you can also sell the stock and buy it back during the same day. An intraday trade does not result in delivery because your net position at the end of the day is zero. That means only the profit or the loss on the trade is credited or debited to your trading account. You demat account does not get impacted in any way.

Intraday trading has emerged as an important chunk of the daily market volumes in the cash equity segment. Intraday trading can be done on the long side or on the short side. That means, you can buy a stock in the morning and close it out on the same day. Alternatively, you can also sell the stock in the morning and cover your position before end of trading on the same day. When you select a trade for intraday, then you need to close out the trade before end of day. If you don’t do so then most online brokers have the system of automatically closing your position in the last 15 minutes of trade.