Intraday trading is the most popular trading nowadays. For intraday trading, there is a necessity for a huge knowledge of technical analysis. Intraday trading can’t give you profit without great knowledge of technical analysis of any stock. It is also very risky because it can give you huge loss also.
WHAT IS INTRADAY TRADING?
It is a trading system of the stock market where you can’t hold any stock for a long time. When you buy and sell the same stock within the day(between market hours) that is called intraday trading.
Here you can not take delivery of your stock in your Demat account because you have to sell your stock within the day if you don’t sell your stock within the day your broking app will automatically sell your stock end of the day with its current value at.
Here you can make a profit when you buy the stock at a low price and sell the stock at a high price
Here is an interesting topic also which is called short selling.
WHAT IS SHORT SELLING
When you sell a stock without holding that and also buy the stock end of the day that is called short selling. This is very interesting because here you can sell the stock without holding that.
Here you can make a profit when you sell the stock at a high price and buy it at a low price.
If you do not buy the stock by end of the day your broker will automatically buy the stock at the market price.
HOW TO WORK AND WHAT IS INTRADAY TRADING EXAMPLE?
In intraday trading, people are buying the stock at a low price and sell it at a high price thus people are making a profit. Here people can not take delivery of their stock.
HOW TO WORK SHORT SELLING?
In short selling, people are selling their stock at a high price and then they buy that at a low price.
but here is a common question if anyone not holding stock how they can sell their stock?
Well, it’s not important to buy a stock before selling because your stock broker has so many stocks so when you are doing short selling you are selling your stock broker’s stock and then you adjust it by buying the stock.
ADVANTAGES OF INTRADAY TRADING
- IT CAN GIVE HUGE PROFIT AT MINIMUM INVESTMENT.
- IT CAN GIVE HUGE PROFIT IN MINIMUM TIME.
- HERE MARGINS ARE LOW AS COMPARED TO DELIVERY.
- NEED HUGE EXPERIENCE IN TECHNICAL ANALYSIS.
- RISK IS HIGH
WHAT IS MARGIN IN INTRADAY TRADING
Every broker has a different margin for intraday trading. But here we are going to share some popular and common broker’s margins. You can download the file just clicking on the download now button below.