What is Intraday Share Trading or Day Trading?

What is Intraday Share Trading or Day Trading? – Share Trading Course for Beginners with Tips, Rules, Example. Learn How to Do Intraday Trading.

What is Intraday Share Trading or Day Trading?

Intraday share trading or day trading (sometimes also called margin trading) is for traders in Stock Market in India who want to gain from market fluctuation in a day but have limited money.

With intraday share trading or day trading on margin stocks, an investor can buy or sell stocks 4-5 times more than than the amount he or she has in bank account.

Intraday Share Trading OR Margin trading helps you to make profit from intraday movements in the stock markets if the price moves in your favor. If the movement of price is not in your favor then you make loss.

Also Read:

• Intraday Trading Tips and Strategies for Beginners
• Securities Lending in Share Trading
• Volatile Stocks – Should I Buy?

Intraday Trading Example:

You want to buy 100 shares of Reliance Industries @ Rs. 2,500 Each. The total cost would be 100 * 2,500 = Rs. 2,50,000/-.

But if you are buying with an intraday perspective then you can buy the same under Margin Trading with a fixed Margin Amount. Margin Amount is the amount of money that you must have in your bank account to buy or sell shares.

Under Margin Trading, you will require only a Margin % of the money required for the transaction. If the Margin Amount to buy shares of Reliance Industries is 20%; then the amount required for the transaction would be 20% or total trade value. In this case the Margin Amount is 20% of 2,50,000 i.e. Rs. 50,000/-.

Also Read:

• How to Pick Best Stocks to Buy in India
• Where to Open Demat Account Online in India?
• How to Predict Stock Market Direction

How to Do Intraday Trading

• If you are buying under margin, then you will make profit at the end of the day if the prices rises. You will incur loss if the price falls.
• If you are selling shares under Margin, then you will make make profit if price of the share falls. You will make loss if the price rises.

NOTE:

FAQs: Intraday Share Trading

Conclusion

I personally suggest to STAY Away from Intraday or Day Trading. It is more like Gambling with Too High Risk. It is Not One of the Best Investment Options for High Return. Most People / Traders Lose their money in such trading.

I hope now you know What is Intraday Share Trading and How to do it. Please feel free to ask any doubt or question in the comment section below.

Please SHARE with others. Thanks!

Also Read:

• Types of Orders in Stock Market in India
• Share Trading Mistakes to Avoid
• What is Rolling Settlement Cycle in Stock Market?
• How Stock Market Works?
• What is Buying Limit in Share Trading?
• Insider Trading in Stock Market in India
• What is Short in Share Trading?
• Top 10 PCB Manufacturers in India
• Top 10 Companies in India by Market Cap
• What is Demat Account?
• Circuit Filters and Trading Bands in Stock Market
• Badla Financing in Share Trading
• What is Equity Investment?
• How to Select Stocks for Intraday Trading