Intra Day Trading, as the name implies, the purchase and sale of a day's interval (intra) ie trading, On the same day if a stock or stock is purchased, the stock should be sold before the market closes, or if you do a short sale, then by buying the stock after the market closure, close your open position, So, in this way, Trading goes to Intraday Trading.
Intra Day Trading is also known by many other names : E.g., Day Trading, MIS (Margin Intraday Square off).
Benefits of intra-day trading (INTRADAY TRADING) Being a day's RISK- You have to complete the deals in intraday trading only in a single day, and in this way you only take a day's risk, Profit or loss in one day. You gain or lose within a day.
All Brokers in Intra Day Trading give their customers MARGIN MONEY for Intra Day Trading,Like if you have got ten thousand rupees and your broker is paying ten times MARGIN cash, you can buy and sell 10 times 10 thousand i.e. 1 lakh shares, Now suppose you had 10 thousand rupees and you bought a stock of 1 lakh using MARGIN MONEY, and because you have taken TRADE in intra.
Now there are three possibilities:-
When the price of shares increases - (PRICE GO UP):- Now suppose that if you had taken 1 lakh shares at the time of the closure of the market, its value has gone up to 1 lakh 1 thousand, and if you sell it, then you have the benefit of 1 thousand,And you now get AMOUNT, 10 thousand who was yours and together with a profit of 1 thousand ie 11 thousand, (in which you have to pay the broker's fees and the charge to buy and sell shares).
When prices of shares decrease - (PRICE GO DOWN):- Now suppose that if you had taken 1 lakh shares at the time of the closure of the market, its price has gone up to 99 thousand, and you sell it, you have a loss of 1 thousand,And you now have AMOUNT, 10 thousand who was yours and with less than 1 thousand loss, 9 thousand, (in which you have to pay the broker's fees and the charge to buy and sell shares)
When the prices of shares are as much as you took - (NO PRICE CHANGE):- If the market is closed - if there is no price change and the share of 1 lakh, its price is only 1 lakh, and you sell it, then you have no benefit,And you save your AMOUNT, 10 thousand who was yours, (in which you have to pay the broker's fees and the charge to buy and sell shares).
KEYNOTE:- 1. If you take the trade with the margin from the broker, then, in this case, you have to complete your deal on that day, before the market closes, if you do not complete the deal before the market closes, regardless of the value, your broker can sell it and take your margin cash. 2. The broker has to have something to do with the advantages or disadvantages to which you have received, whatever margin money you have taken, he needs it back before the market closes. 3. In intra-day, the use of margin money should be used in a very thoughtful way, because it is a weapon which runs on both sides, it also gives you a good advantage, and at the same time also brings you a great loss, and Often a new stock market trader's first loss occurs only in intra-day. 4. Intraday Trading should be done only when you have some better information about the ups and downs in the stock market, but often people are reversed by it, the new investor intraday trades firstly. 5. The biggest reason for making intraday trading is in keeping with the ups and downs in the short term in the market.