Intraday trading means buying and selling securities within the same trading day, with no positions carried overnight. All trades are closed before market end—3:15-3:20 PM in India. Intraday traders profit from small price movements using higher leverage, but face significant risks from rapid losses and trading costs.
- All positions opened and closed on the same day
- Higher leverage available (5x to 20x)
- Must square off before market close
How Intraday Trading Works
Intraday trading requires completing the cycle within market hours:
Intraday Trade Example:
9:15 AM: Market opens
9:30 AM: Buy 1,000 shares at ₹200
Position value: ₹2,00,000
Margin used: ₹20,000 (10x leverage)
12:00 PM: Price rises to ₹205
Unrealized profit: ₹5,000
2:00 PM: Sell 1,000 shares at ₹205
Realized profit: ₹5,000
3:20 PM: Deadline passes (already exited)
Net Profit: ₹5,000 (25% on ₹20,000 margin)
Quick Reference: Intraday vs Delivery
| Aspect | Intraday | Delivery |
|---|---|---|
| Holding Period | Same day | Days to years |
| Leverage | 5x-20x | 1x-5x |
| Margin Requirement | Lower | Higher |
| Overnight Risk | None | Present |
| Shares in Demat | No | Yes |
| Brokerage | Usually lower | May be higher |
| Tax Treatment | Business income | Capital gains |
Example: Intraday Trading Day
Typical Day Trader Schedule:
| Time | Activity |
|---|---|
| 8:45 AM | Pre-market analysis, identify candidates |
| 9:15 AM | Market opens, watch first 15 mins |
| 9:30 AM | First trades if setups appear |
| 9:30-11:00 | Active trading window |
| 11:00-2:00 | Reduced activity, manage positions |
| 2:00-3:00 | Close remaining positions |
| 3:15 PM | All positions must be closed |
| Evening | Review trades, journal, prepare next day |
Intraday trading means buying and selling on the same day with no overnight positions. Higher leverage is available but risk is amplified. All positions must close before 3:20 PM in Indian markets.
Benefits of Intraday
No Overnight Risk
Gap ups and gap downs from overnight news don’t affect you—you’re flat every night.
Higher Leverage
Trade larger positions with less capital. ₹1 lakh can control ₹10-20 lakh.
Quicker Profits
No waiting weeks for moves. Profits (or losses) realized same day.
Lower Margin
Reduced capital requirement compared to delivery trading.
Risks of Intraday
High Failure Rate
80-90% of day traders lose money. The odds are against you.
Leverage Cuts Both Ways
10x leverage means 10x losses too. A 5% move = 50% of margin.
Transaction Costs
Frequent trading multiplies brokerage, STT, and slippage costs.
Forced Exit
If you can’t exit a losing position, the broker does it—often at unfavorable prices.
Intraday in India
Square-Off Time
Most brokers auto-close at 3:15-3:20 PM. Don’t wait until the last minute.
Product Codes
Choose “Intraday” or “MIS” (Margin Intraday Square-off) when placing orders.
STT Difference
Sell-side STT for intraday equity is 0.025% vs 0.1% for delivery.
F&O for Overnight
If you want leveraged overnight positions, use Futures or Options (separate regulations).
Common Mistakes
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Over-leveraging – Using maximum available leverage means small moves wipe you out.
-
No stop loss – Hoping for recovery leads to forced exits at worst prices.
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Overtrading – More trades doesn’t mean more profits. It means more costs.
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Ignoring costs – Brokerage and slippage eat into small gains.
How JournalPlus Tracks Intraday Trades
JournalPlus automatically identifies and tags intraday trades, calculating your day trading performance separately from delivery trades—helping you understand where you’re actually profitable.
