what is intraday trading

What is IntraDay Trading

Intraday trading as the name suggests refers to the trading system where you have to square-off your trade on the same day. Squaring off the trade means that you have to do the buy and sell or sell and buy transactions on the same day before the market close. Intraday Trading is also referred to as Day trading by many traders.

Let’s explain Intraday trading with an example.

Suppose that you have bought 100 stocks of ABC limited during the open market hours, then you have to sell the same no. of stocks of ABC limited before the market closure. Same is the case if you have sold the stocks, you have to buy the same quantity of the stock you have sold earlier.

In online trading platforms when you are making an intraday transaction, you have to explicitly specify (as shown below) that it is an Intraday transaction while placing the order. However, in case of a buy transaction, you always have the option to change it to delivery later before the market close.

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