Intraday Trading

Intraday Trading : Exploring the Potential of Intraday Trading

Intraday trading has a lot of potential in financial markets. It is the process of profiting from short fluctuations in the market prices. Buying and selling of securities on the same day is what intraday trading is all about. For investors, be it experienced or a beginner, knowing what is intraday trading and how it works is crucial as they start to invest big amounts of money

Find out more about what is margin in intraday trading. Read the article to also find out about what is intraday trading in stock market.

What is intraday trading

Buying and selling financial products during the same trading day is referred to as intraday trading, or day trading. When compared to traditional investing, which involves holding positions for several days, weeks, or even years, intraday traders try to profit from short-term price changes and variations in market volatility. Getting to know what is intraday trading is beneficial as then investors can explore their trading options and get a better understanding of all the options they have in hand.

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
  • Advance Technical Analysis
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When looking at Intraday Trading, SMC Global happens to be a popular Indian financial services intermediary that can help investors in India with intraday trading. The SMC Global Securities offer an extensive platform to support intraday traders in their trading attempts since we recognize their specific needs. In the quick-paced world of intraday trading, we enable traders to make wise judgments and grab profitable chances with our cutting-edge trading tools, real-time market data, and knowledgeable research insights.

SMC Global Platform can be utilized for Intraday Trading. Steps on how to use this financial platform are:

  1. Set-up an account with SMC Global Securities
  2. Login to your account and this can be accessed from anywhere and any device.
  3. Perform some market research by looking into trends, news, and trading options
  4. SMC Global provides charting and analysis to analyze the price movements and to identify entry and exit points.
  5. Place order once you have identified your trading opportunity with SMC Global’s easy to use interface.
  6. Monitor positions throughout the trading day and adjust your trading strategy accordingly.

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
  • Advance Technical Analysis
  • Free Demat Account


Understanding the meaning of what is intraday trading example

In reality, the only way investors can appreciate what is intraday trading is when they are given an example. Illustrated here is what is intraday trading example to get a better understanding of the concept of intraday trading.

Assume that you have been monitoring Company X’s stock which has now risen to Rs. 500 per share. You strongly believe that good news about the company’s earnings will lead to an increase in share price during the coming few hours. Accordingly, you decide to invest your total amount of Rs. 50,000 in purchasing 100 units of Company X at a rate of Rs. 500 per unit.

As anticipated, towards evening, the cost of shares for Company X rises up to Rs. 550 for each one. You therefore sold all your 100 shares at this new price and earned yourself a profit of Rs. 5,000 as an opportunity for making profits was seen by looking at it from this perspective. That means: (550 – 500) =50 per share ×100 shares. You have done Intraday Trading on the short-term fluctuation in price on Company X Shares; such operations involve purchase and sale within a single day’s trade session.

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
  • Advance Technical Analysis
  • Free Demat Account


Significance of what is margin in intraday trading

Intraday trading is extremely dependent on margin trading, which enables traders to borrow money from their broker to increase their purchasing power. The margin requirement is the minimal amount of equity that traders must keep in their account while trading on margin. This is the meaning behind what is margin in intraday trading and it is important for investors to know this before start trading.

Margin in intraday trading can be explained in a better way with an example:

For example, If a stock has a 50% margin requirement, you can own a position worth twice the amount of money in your account. Therefore, you may be able to trade with a Rs.10,000 buying power if you had Rs. 5,000 in cash. Still, there are more risks that are related to margin trading because losses from losing a trade can be greater than the initial investment.

What is the importance of intraday trading in the stock market?

For investors, knowing the answer to the question what is intraday trading in stock market is of great importance as it can help them plan their investments and options for using this trading method.

Stock market intraday trading requires quick decision-making and precise timing. To find short-term trading opportunities, traders examine a variety of variables, including market sentiment, news releases, and technical indicators.
Some common methods involved in the intraday trading in stock market are:

  1. Momentum trading: This involves benefiting from the momentum of rising or dropping prices
  2. Scalping: This method aims to profit from little price swings.

It takes discipline, risk management, and an in-depth knowledge of market dynamics to trade intraday profitably. To minimize possible losses, investors can do the following things:

  1. Set up precise entry and exit points
  2. Follow tight stop-loss orders
  3. Keep a close eye on your holdings all the time during the trading day

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
  • Advance Technical Analysis
  • Free Demat Account


Challenges are also involved when it comes to intraday trading. Unexpected news events, slippage, and market volatility can all affect trading results. Due to this, it’s critical for intraday traders to remain knowledgeable, adjust to shifting market conditions, and always improve their trading methods.

Some resources that users can use by SMC Global for intraday trading are:

  1. Real-Time Market Data and Analysis
  2. Advanced Trading Tools
  3. Diverse Range of Financial Instruments
  4. Seamless Execution and Support

Conclusion:

Traders can profit from short-term market swings and exciting opportunities to make money with intraday trading. Through an in-depth understanding of intraday trading principles, implementation of smart risk mitigation strategies, and utilization of SMC Global Securities’ resources, traders can effectively navigate the complex workings of the market, thereby realizing the complete potential of their trading pursuits.

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
  • Advance Technical Analysis
  • Free Demat Account


Reference:
https://cleartax.in/s/income-tax-on-intraday-trading

https://www.5paisa.com/finschool/10-best-intraday-trading-strategies-tips-for-beginners/

https://www.bajajfinserv.in/intraday-trading

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