5.6What is intraday trading?
Time-sensitive: SEBI’s July 2023 study of FY2022-23 found about 7 in 10 individual intraday traders in the equity cash segment made losses. Rules and rates change, so check the official source before acting.
1What is it?
Intraday trading means buying and selling the same stock within the same trading day. You never take delivery.
2Why does it exist?
Traders try to profit from small price moves during the day, often using leverage. It is closer to speculation than investing.
3Stock market example
(Hypothetical prices.) You buy 100 shares of ICICI Bank at ₹1,200 at 10 a.m. and sell them at ₹1,210 at 2 p.m. Profit before charges: ₹1,000.
4Risks
- SEBI studies show most individual intraday traders lose money.
- Leverage amplifies losses.
5Quick revision
- Buy and sell on the same day.
- Profit from small moves.
- High risk; most beginners lose.
6Knowledge check
Q1. Do you get shares in demat with intraday?Show answer
No.
Q2. Is intraday investing or speculation?Show answer
Mostly speculation.
Q3. Product code for intraday?Show answer
MIS (Margin Intraday Square-off), or "Intraday".