What is Intraday?
Intraday refers to activities or events that occur within the same trading day in financial markets, particularly in the context of buying and selling securities such as stocks, currencies, or commodities. Intraday trading, also known as day trading, involves opening and closing positions on the same trading day, with the aim of profiting from short-term price movements. Traders participating in intraday trading typically do not hold positions overnight and seek to capitalize on price fluctuations within the trading session.
Key Features Of Intraday:
- Short-Term Horizon: Intraday trading involves buying and selling securities within the same trading day, with positions typically closed before the market closes.
- High Frequency: Intraday traders execute multiple trades throughout the trading day, often leveraging short-term price fluctuations to generate profits.
- Leverage: Intraday traders often use leverage, which allows them to control larger positions with a smaller amount of capital. While leverage can amplify potential profits, it also increases the risk of losses, as even small price movements can have a significant impact on leveraged positions.
Difference between Delivery and Intraday
In the stock market, it’s important to know the difference between two types of trading, delivery and intraday. Delivery means buying and keeping stocks for a while, while intraday means buying and selling on the same day. The big differences are how long you keep the stocks, the risks involved, and whether you’re using borrowed money.