hElLO tRaDeR,
On the ORDER WINDOW of your trading terminal you can use the MIS option for opening and closing intraday trade positions.
All CNC trade positions opened and closed the same day are also considered as intraday trades.
Trading Intraday
Intraday trading is where you conduct buy and sell transactions on the same stock on the same day, before the market ‘closes.’
In most markets, at least online ones, if you select intraday trading and have not conducted the full transaction then it will conduct the ‘squaring off’ of the stock for you automatically.
In online markets, if you haven’t sold the stock you bought, then you can change the delivery option to later delivery before the market closes.
Unlike interday trading, in intraday trading, you do not actually own the stock at any point. You have nominally bought the stock, and can nominally sell it, but you are never in actual possession of the stock.
Advantages of Trading Intraday
Despite the uncertainty of intraday trading, there are reasons that people play at day trading:
-
There is a high margin available for this type of trading. Your margin to buy might be several times a multiple of the amount you actually have in your account.
-
Brokerage charges are much lower than for delivery later, as there is no physical transfer requiring high charges
-
Stock prices overnight or for long periods can be very uncertain. Making profit intraday might seem to be a better prospect. Even if the profit is low, it is a near-certain profit.
Problems
Even though trading intraday seems like a good option, it needs strict discipline and a clever eye. You need to be constantly aware of the changes in the markets and ready to take advantage.
It is not easy to make large profits on intraday trading, and it takes skill to trade so as to make several small profits.
A novice would have to pay a lot of attention so as not to lose large amounts and get disheartened.
1 Like