What Is Intraday Trading
Read Also - 25+ Happy Holi Images || Holi Images || Image Of Holi || Holi Quotes
Intraday trading means that you can buy or sell shares within a specified time. India's stock market remains open 5 days in a week except on government holidays. That means you can trade from Monday to Friday. Stock exchanges remain closed on Saturday and Sunday. Intraday trading timings start from Monday to Friday at 9 am and the market closes at 3.30 pm.
That means, if you want to do intraday trading, you can do it only between 9 am to 3.30 pm. In any case, you will have to close all your positions before the time set by the broker at 3:20 pm. If you do not do this, your broker will automatically cut your position and for this, you may also be charged a penalty.
intraday trading hours
Pre-Market session – 9 am to 9:08 am
Market opening time – 9:15 am
Market closing time – 3:30 pm
Intraday auto square off time – 3:21 pm (determined by broker*)
By the way, the market opens at 9.15 am. But you can place your orders even between 9 am to 9:08 am which is the pre-market session. If you place your order between these 8 minutes, you will get the same price which will be determined in this session. It is less likely that you will get your desired feeling in this session. It is decided in the pre-market session how many points gap up or gap down the market will open today.
Intraday Trading Benefits
If you want to do intraday trading then you should know about both its advantages and disadvantages. Intraday traders get the benefit of margin. That is, if you work in cash i.e. equity in intraday trading, then you will get the benefit of 5 times the margin. If you have only Rs 10,000, you can buy shares worth up to Rs 50,000 intraday.
But you also have to keep in mind that if you are taking advantage of the margin then your risk will also increase and in any case, you will have to cut your position before 3.20 pm. Another big advantage of intraday trading is that you will not have overnight risk. That means you would have gone home with your profit or loss. Now it doesn't matter to you whether the market opens negative or positive tomorrow.
If there are advantages in intraday trading, there are some disadvantages also. The chances of an intraday trader making a profit every day and getting a big move every day are less. Along with this, in intraday trading, you also have to handle volatility. Sometimes due to news and panic, you have to face unwanted movements. You can also read the article on how intraday stock selection is done.
What Is Delivery Trading
Till now we told you about intraday trading. So let us now know about delivery i.e. positional trading. If you buy a stock for a long time then it is called delivery trading. That means, if you buy a share in delivery, now you can sell that share today, tomorrow, or any time after a year. There will be no time restriction on you. This is called delivery trading.
Delivery trading has both advantages and disadvantages. The biggest advantage is that you are not bound by time in this. You have a lot of time to think and make the right decision. With this, you are saved from intraday traps. You also get the benefit of a big gap. So let us now know some disadvantages of delivery trading. You will always have overnight risk in delivery trading. That means there is no assurance as to what negative news will arrive overnight. Due to this, the possibility of a market gap increases. Swing trading is quite popular in delivery trading. You can read the article on how swing trading stock selection is done.
