Intraday trading refers to buying and selling of financial instruments that include stocks, funds, cash etc. In Intrday trading all the transactions (buying and selling) should be completed before market closes. profit in intraday is more than other ways of trading in the stock market, that’s why traders are more attracted to intraday trading knowledge.
Intraday Trading Knowledge
“Transactions has to be completed by the end of the trading day otherwise the order will get automatically triggered”.
How Intraday trading is attracting lot of people
- Intraday trading is very simple and you can earn bucks in a single day without much risk.
- Intraday trading charges are less compared to delivery charges.
- Margin values are large that means you can buy 10 times of the margin amount you have.
- Many beginners find intraday trading attractive and easy to earn some money.
Intraday trading can be done using 3 options
- Stop Loss
- Market Price
- Limit Order
In Intraday trading mainly using stop loss one can buy the shares at Current market price (CMP) and by setting the stop loss value while placing the order you can sell the share.The order get triggered automatically.
- For example if someone bought share for 285 then he can set the maximum profit and stop loss value once share reaches that price sell or buy order will get executed.
Market Price: One can buy or sell the share at Current market price (CMP).
- For example if an order bought at 2848 at market price trader can sell shares at the market price whether it is trending up or down.
Limit order: Once can buy or sell the shares by setting the limit price on the shares.
- For example if an order bought at 2848 at market price trader can sell the share by setting the 1498 to 1500 than shares will be sold once the market price reaches that mark.
Traders can change the orders from Intraday to delivery method by Changing the mode of the order using trading platforms that are used for trading purpose.
Intraday Trading Knowledge is very important specially for beginners. Especially to those who want to see a constant success rate.