Intra Day trading
Buying and selling of shares on daily basis is called Intra day trading. Whatever you buy today you have to sell it today OR whatever you sell today you have to buy it today and very importantly before the close of the Market.
Benefits
Buying and selling of shares on daily basis is called Intra day trading. Whatever you buy today you have to sell it today OR whatever you sell today you have to buy it today and very importantly before the close of the Market.
Benefits
• Margin trading –
In Intraday trading you get margin on your balance amount means you get more limit on your available balance amount to do trading this concept is called margin trading.
Some broker allows up to T+5 day settling
the trade. How much extra amount (margin) you are going to get that totally
depends on your broker.
If you do margin trading then you have to square off your open trades on the same day (means if you bought shares then you have to sell and if you sold shares then you have to buy)before market closes.
• Second important advantage is that you have to pay is less brokerage (commissions) on day trading (Intraday) as compared to delivery trading. This brokerage again vary from broker to broker.
• In day trading you can sell and then buy this is called short sell which you cant do in delivery trading. You can sell shares when prices are falling and then buy when price falls further.
Disadvantages
• As you are benefited to get more limit to trade and get more extra profit it is also equally true that you are also taking more risk of loss.
• At any cost you have to square off the open transaction before 3:30 PM at that time the price may not be in your favor.
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