What is intraday trading?

Intraday trading refers to the style of short-term trading where the trader buys or sells a stock and then squares off the position on the same day before the market closes. For instance, a trader may buy a stock at ₹100 at 10:00am and then sell it off at ₹103 by 10:30am. The objective of intraday trading is not to invest for the long term but to trade for quick gains. The biggest advantage that traders see in intraday trading is that it does not block the capital after the market closes for the day. Further, not taking positions overnight also helps in eliminating risks of unfavourable opening on the next day. Meanwhile, one of the disadvantages of intraday trading is that it gives very little time (only a day) for the position to become profitable.

Courtsey : Upstox (start Karke Dekho)

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