Buying and selling stocks on the same trading day is called intraday trading. It is also referred to as 'Day Trading'.
Intraday traders take advantage of these price swings by purchasing and selling shares during the same trading day in order to profit from the volatility. Do so, and your broker may square off or turn the transaction into a delivery one, depending on what you've done thus far. It doesn't matter if you're a seasoned trader or a total newbie; the market indications and trends will guide you in the right direction.
Basics Of Intra-Day Trading
A day trader is someone who buys and sells stocks inside a single day. Online trading platforms are used for this purpose. Assume a person decides to invest in a company's shares. The gateway of the platform utilised must expressly state 'intraday.' Users can purchase and sell equal amounts of a single stock on the same day prior to market closing by using this feature. The goal is to profit from the fluctuation of market indexes. As a result, many people refer to it as "day trading."
If you're willing to put in the time, the stock market will reward you well. However, they can help you make money right now. For example, if a stock begins at Rs. 500 in the morning, it will trade at that price throughout the day. Within a few hours, it's up to Rs. 550. Within a few hours, you might have profited Rs 50,000 by buying 1,000 stocks at Rs 550 apiece and selling them at that price. Intraday trading is a term for this type of trading.
Features of short-term trading
Orders placed through online trading platforms must be designated as "intraday" in nature. During trading hours, you would open a position in the stock and close it the same day. At market closure, the position is immediately recalculated and closed out. Intraday trading does not give you ownership of the stocks you purchase and sell, thus you don't own them. The purpose of intraday trading is to profit from price swings throughout the day, not to own stocks.
Your broker can lend you money to increase your purchasing power and increase the possibility for investment returns via leveraging. You may use intraday trading leverage to increase your risk exposure while only paying a portion of the open position's value. Leveraging comes with a set of criteria that you should learn about from your broker before you begin to reap its advantages.
Online trading systems need you to indicate if an order is for intraday trading or for futures trading.
Take a stake and close it during market hours of that day's trading
If you don't close it, the position is automatically squared off at the closing price of the market.
The purpose of intraday trading is not to hold stocks, but rather to profit from price swings that occur during the trading day.
