November 04, 2025
10 mins read
Intraday trading means buying and selling shares within the same day. Unlike normal investing, where shares are held for months or years, here the goal is to use small price changes to make quick profits.
Day traders must carefully follow price trends, company news, and market behaviour. If they do not monitor the market closely, they can lose money. Intraday trading is based on small price movements that occur during a trading day. Traders buy and sell shares based on a projected price movement, and they must close out all positions before the end of the market day otherwise the broker closes them for you.
Intraday trading works through short-term speculation on stock price movements. Here, traders aim to benefit from small fluctuations during the day. Trades can be placed using limit or market orders and are squared off before the end of the session.
Example: A trader purchases 100 shares at ₹250 and then the price moves up to ₹260. Selling at this point gives a profit of ₹10 per share, or ₹1,000 total, excluding extra charges like brokerage.
Another example: You buy 1,000 shares at ₹10 each, total cost ₹10,000. By 3 P.M., the price rises to ₹11. Selling earns you ₹1,000 profit for the day, without holding any shares overnight.
Intraday traders use multiple small trades each day and often hold onto shares for only a few minutes. Scalpers are focusing on extremely small changes in price and expect that small change to cumulatively amount to a profit by day's close.
Investors buy shares that are moving either strongly up or down. Traders “ride the wave” until the momentum fades, at which point they exit. This strategy requires precise timing since price momentum can quickly reverse, leading to losses versus gains.
Investor traders watch for support and resistance levels. When price action breaches either a support or resistance level, they open trades in expectations of large price movements. This trading style tends to behave best when the market is showing robust activity with clear breakouts.
Also called contrarian trading, it goes against the trend. Traders buy when prices seem too low or sell when prices seem too high, hoping the trend soon reverses in their favour.
Here, traders act on market news such as company results, government data, or world events. Prices can rise or fall sharply after news, so traders need speed and accuracy to profit.
Some use automated software to trade. The computer follows set rules, analyses huge data, and places trades instantly. It reduces human errors but requires strong knowledge to set effective strategies.
No shares will be placed into a Demat account; all trades will close on the same business day.
Brokers will generally include some leverage which facilitates the ability to trade more substantial amounts. While this will allow for larger gains, it also amplifies the losses if prices move against your trade.
Day traders need to conduct thorough research on potential stocks, need to assess market charts, and build strategies before executing trades, which will often include stop-loss orders to prevent significant losses, which may occur when markets experience extreme volatility, and profit targets to capitalize on reactive price movements based on support and got-of the stocks price levels to lock in profits.
The only rule for intraday trading is that all positions must close before the market closes.
Select a worthy broker that offers a robust and simple platform with low paid and commission fees. Without a Trading Account, you won't be able to place intraday trades in the stock market.
Learn about margin, leverage, square-off, long position, and short position — all of which are essential for making sound decisions and avoiding a careless trading mistake.
Understand how to use indicators like Moving Average, RSI, Bollinger Band, or MACD. Indicators help suggest whether stock prices are expected to go up, down, or stay steady.
Please make a plan around your risk tolerance and objectives for making your trades. Stick to your plan and avoid making sudden or emotional decisions — both often lead to unnecessary (and incorrect) losses in intraday trading.
Keep watching live prices, company news, and economic news. Staying on top of what's going on allows you to take action when an opportunity reveals itself or the situation changes against your trade.
Always utilize a stop-loss. Only trade with money you can afford to lose. Limit trading; do not overtrade, and be happy having a small loss instead of chasing big gains.
Additional Read: How to Use Pivot Point in Intraday Trading?
Refers to an average price over a period of time. It averages the ups and downs of the price to get a clearer picture of any trends happening in the market. Traders select a period of time to observe changes such as 1 day or 1 hour, and use that information to anticipate changes in price, if any, in the future direction.
Always uses three lines on the chart. When the lines widen, the market is experiencing volatility and when they contract the market is calm. Traders can use Bollinger Bands to see whether shares are too cheap or too expensive.
Measures price movement; changes in price strength.A value above 80 means shares are overbought, while below 20 means oversold. Traders use it to decide the right time to buy or sell.
Shows momentum and trend changes. It uses two moving averages and a histogram. Traders watch it to know if a stock’s direction may continue or reverse soon.
Intraday trades start and finish within the same day. Normal trades can last months or years. In intraday, you never own the shares. In regular trading, ownership transfers into your Demat account.
Intraday traders rely on short-term price changes and technical charts. Regular investors look at long-term company performance. Intraday also uses leverage, which increases both profits and risks, while delivery trading uses actual investment money.
Lower risk: Because intraday trades are opened and closed within the same market session, an investor avoids the danger of overnight events that might cause big losses. Prices don’t have time to swing wildly outside market hours.
Lower commission charges: Brokers charge much smaller fees for intraday trading because securities are not transferred into the investor’s name permanently. Delivery expenses, stamp duties, and other long-term ownership costs are often avoided or reduced.
Higher profits: With strong and accurate strategies, intraday traders can gain significantly. They may profit both when markets rise (buy and sell) and when markets fall (through short-selling), depending on how well they predict the movement.
Liquidity: Intraday stocks are usually very liquid, meaning lots of people want to buy and sell them. This allows an intraday trader to enter and exit positions quickly without being stuck waiting for a buyer or seller.
Capital gains through market fluctuations: Traders can profit from both the upside and downside of the market. If prices go up, gains are from buying low and selling higher; if prices drop, profits may come via short-selling in a bearish phase.
Need for strong knowledge: Intraday trading demands a deep understanding of markets, technical analysis, and financial records. Novice or ill-prepared traders may struggle to make good decisions and could lose money.
Market volatility: Sudden price swings, unexpected news, or economic shocks can upset even well-planned trades. Volatility may bring rewards but also increases the risk of sharp losses quickly.
Delivery Trading: Buy and hold shares long-term.
Swing Trading: Hold for a few days or weeks.
Scalping: Many trades daily for tiny gains.
Positional Trading: Hold for months.
Algorithmic Trading: Computers trade automatically using fixed strategies.
Additional Read: What is Moving Averages for Intraday?
Feature | Intraday Trading | Delivery Trading |
Holding Period | Buy and sell shares on the same day. | Buy shares and keep them for days, months, or years. |
Ownership of Shares | No ownership is transferred; trades are closed daily. | You get full ownership of shares in your Demat account. |
Risk Level | Higher risk because of leverage and daily price changes. | Lower short-term risk; depends on company growth and long-term market. |
Profit Goal | Earn quick profits from small price movements during the day. | Earn returns from long-term growth, dividends, and price appreciation. |
Leverage | Brokers give leverage, allowing bigger trades with small money. | Usually no leverage; you invest the actual money required. |
Market Monitoring | Needs constant tracking of prices and fast decisions. | No need to watch prices all day; patience is more important. |
Brokerage Charges | Generally lower brokerage fees. | Brokerage charges are higher compared to intraday. |
Overnight Risk | No overnight risk since trades close before market ends. | Prices may change overnight, so there is overnight risk. |
Bajaj Broking offers you the benefit of low brokerage rates for intraday trading. Through affordable subscription plans, you can trade at a flat fee and save a lot on brokerage. With Bajaj Broking, brokerages go as low as ₹10 per order flat for all segments of trading: Intraday, Futures and Options, and Delivery.
Subscription packs from Bajaj Broking | Equity Intraday trading brokerage |
Freedom Pack | ₹ 20 / order |
Professional Pack | ₹ 10 / order |
Disclaimer: Investment in securities market are subject to market risk, read all related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit. All leveraged intraday positions will be squared off the same day. There is no restriction on the withdrawal of unutilized margin amount. | |
Volume and liquidity are the most important aspects of intraday trading according to investors. Intraday traders choose stocks with high liquidity and high trading volume. It is important to do your due diligence (research, check the news, use technical indicators) along with analysing the volume and liquidity for that stock before choosing a stock for intraday. It is always recommended by traders to analyse stocks through various technical indicators to get a better understanding of the price movements of the stocks.
Other than volume and liquidity, it would be advisable if you purchased a stock that has a high correlation with a reputed stock exchange's benchmark index.
Intraday investors can track the trade volume index of a specific share to study price fluctuations. If there's a rise in the trade volume index, then it means that there's either excessive demand or supply, that can help take positions in intraday trades.
Intraday trading is exciting but risky. It needs quick thinking, discipline, and risk control. With practice, strategies, and good tools, profits are possible. Always trade wisely, never risk too much, and adapt to changing markets.
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Intraday trading refers to buying and selling financial instruments within the same trading day to profit from short-term price movements.
If a trader buys 1000 shares of a stock at ₹10 each in the morning and sells them at ₹11 each before the market closes, they make a profit of ₹1000 in intraday trading.
Bollinger Bands, Relative Strength Index (RSI), Exponential Moving Average (EMA), Moving Average Convergence Divergence (MACD), and Volume are some of the best indicators for intraday trading. These tools assist traders in spotting market trends, assessing momentum, and evaluating volatility, helping them make informed trading decisions.
Intraday trading indicators analyse price data to identify trends, reversals, and potential trading opportunities within the same day.
The best time frame for intraday trading varies; common choices include 1-minute, 5-minute, and 15-minute charts, depending on the trader's strategy.
Key technical indicators for intraday trading include Moving Average, Bollinger Bands, RSI, and MACD.
Choose stocks with high liquidity and trading volume, perform thorough research, and use technical analysis to identify potential trading opportunities.
Regular trading can involve holding positions for days, months, or years, while intraday trading requires closing positions within the same trading day.
Beginners can earn by starting with small trades, using technical indicators, developing a trading strategy, and managing risks effectively.
The best charts for intraday trading are typically 1-minute, 5-minute, and 15-minute charts, which provide detailed insights into price movements.
To earn ₹1000 a day from intraday trading, focus on stocks with significant price movements, use leverage wisely, and employ effective trading strategies.
Requirements include a trading account, sufficient capital, a good understanding of the market, and familiarity with technical analysis tools.
Intraday trading can be profitable, but it also involves high risk. Success depends on market knowledge, discipline, and effective risk management.
This rule is an informal guideline used by some traders to limit their trades to three profitable trades, five moderate trades, and seven losses before reassessing their strategy. It is not a standard or universally accepted method.
Some traders follow practices like setting stop-loss orders, selecting liquid stocks, following technical indicators, and monitoring news events. However, outcomes vary depending on market conditions and execution.
Intraday limit refers to the maximum permissible leverage a broker allows for intraday trades. This varies between brokers and is subject to regulatory guidelines and risk management practices.
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