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What is Intraday Trading – How it Works?

What is Intraday Trading – How it Works?
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Intraday trading means, the day trading is defined as the buying and selling of stocks in any exchanges within the same day trading, most common place for intraday trading is a foreign exchange (forex) market and share market.  In a simple way if any trader has bought or buy the stocks and if the price is upward triggered then the trader is sell out the stocks on same day before closing the market, in the same way, if he/she buy any stocks but due to any reason price decreases and trader think not be able to take more risk he/she sell out the stocks in same day, such trading way is known as intraday trading in which the purchase or selling both is occurred on same day in the same market before closing the exchange.

But in that case, traders are well educated about shares and stocks movement reading and else and well funded by the broker. It’s a short term trading strategy to earn on the small movement of stocks price in high liquid currencies. This is the controversial topic of the stock market, its create confusion in the market it’s cause most of the losses in Wall Street, meanwhile traders think about returns in short time of period. The media is always doing ads to promote intraday trading as getting rich quickly. But always it’s not become the truth sometimes it become lies. Mostly it causes due to the lake of knowledge about intraday trading or day trading which is a highly risky way to do the trade.

Most of the good investor or money manager or different financial advisor never interested with intraday trading due to high risk. As per such experts, the success rate is very low and there are many chances of scams in day trading so they recommend bearing. But the traders to study of the market in depth on daily basis and make a plan how to trade, they look very interesting to day trading.

Overall this issue is remains divided in Dalal Street to Wall Street. Those want to go with high risk in trading doing intraday trading.

Who is an intraday trader and how they trade?

Those do trading for living not as a hobby or for high gambling like casinos player, are typically well established in the field of trading with depth knowledge of the marketplace.  Following are few prerequisites to intraday trading:

  • Depth knowledge and experience of the share market, without of having the knowledge or better understanding of market because losing of money on end of the day.
  • If you want to be day trader than keep backup of sufficient capital – in some cases if you buy the stocks for intraday but due to any reason the price decreases and you don’t want to sell out in losing in that case you have to carry the trade and have to pay amount against this to broker.
  • As per knowledge and study, you should have to make your own strategy and compare with another market strategy, like swing trading or arbitrage and have to keep eyes on the trading You have to refine all these according to own day trading strategy. So plan to trade and trade for the plan, the only way to be an intraday trader.


Most of the professional trader, those who trade alone or for a large institution, in this an institutional trader are doing day trading for a living work for a large institution.  They have potential to fight with high risk; they have a large backup of capital and use few analysis software which is costly to buy for the individual trader.