What is Intraday Trading?

Intraday trading, also known as day trading, is a type of trading strategy where buying and selling of securities (stocks, forex, commodities, etc.) occur within the same trading day. The goal is to capitalize on small price movements within the day, with positions being opened and closed before the market closes for the day. Intraday trading is for active traders looking to take advantage of short-term price movements within the same trading day, using strategies like technical analysis and leverage. However, it requires a keen eye on the market and the ability to make quick, calculated decisions.

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Key Points of Intraday Trading

No Overnight Positions

Intraday traders do not hold positions overnight. All trades are closed by the end of the trading session, minimizing the risk of overnight market movements.

Use of Technical Analysis

Intraday traders typically rely on technical analysis (charts, indicators, patterns) to make trading decisions. Fundamental analysis is less important because trades are focused on short-term price movements.

Risk and Reward

Intraday trading can offer significant profit potential, but it also carries high risks. Traders must have a strong risk management strategy, including using stop-loss orders to limit losses.

Market Liquidity

Liquidity plays a crucial role in intraday trading. Traders need to be able to quickly buy and sell positions without facing significant slippage (difference between expected and actual prices).

Quick Profits

The goal is to capture short-term price fluctuations in the market. Traders often make multiple trades in a single day to accumulate profits.

Time Sensitivity

Trades are executed within minutes to hours, and being able to act quickly is essential. Intraday traders often work in real-time to adjust positions as the market evolves throughout the day.

Zero Charges

No Tax, No Fees, Trade without worrying about extra charges for deposits, withdrawals, or any other services.

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