Partner With Us

How Intraday Trading Works? Detailed Ideas

Intraday trading in India has been gaining momentum of late. It is no longer the option of only trade pundits. There is enough information available today in the public domain to learn from and explore intraday trading.

Why choose Intraday Trading?

Simply put, intraday tradingor day trading involves buying and selling of securities and making profits from the price differentiation, within the same trading day. The reasons for you to engage in day trading are many:

  • Additional Income Source: In long-term trades, you cannot rely on the profits or investment earnings to supplement your existing income, but with intraday trading profits, you can. The former provides income benefits after a stipulated time period. In day trading, you earn profits within the same day, and it can be used as an additional support to your day job’s income.

  • Immediate Risk: As compared to regular trading, intraday trading has only immediate risk of the day. When you begin trading the next day, your position is back to square one, and the previous day trading risk will cease to exist.

Ideal Candidates in Day Trading

Before figuring out how intraday works, it is important to know who the prime participants in the intraday trading markets are. While you may have your own style of investing, there are specific characteristics that you must have to engage in day trading:

  • Risk: Since intraday trading involves transactions that get squared off within the same day, a certain level of risk-taking capacity is needed. In long-term trading, you are provided with a relatively longer timeline, hence losses may get compensated with the probable profits within the same time horizon. However, in intraday trading, you earn profits or losses within the same day, so if you are counting on a stock to give you profits and the market sentiment is otherwise, you will have to risk the investment.

  • Technical Know How: Technical analysis is a skillset which can benefit you in day trading. The ability to read market data, through chart patterns, movements and making use of it to place trades can come handy in intraday trading. You do not gain proficiency in technical analysis within days, and it takes years and years to perfect the art. However, it is an excellent skill to upgrade to.

  • Market Research: To successfully carry out intraday trading, you need to ensure that you are dedicating enough time towards studying the market. If you are already occupied by your day job for most hours of the day, you may not be able to time the market and make profits from day trading. To efficiently understand the market sentiment within a day’s time would require dedication and attention toward market monitoring.

Mechanics Behind Intraday Trading

As the name suggests, intraday trading involves transaction of securities within the same day, with the aim of earning profits. To understand how intraday works, you need to be aware of the following steps which can be explained through an example:

  • Step 1: You need to hold a demat account and an online trading platform to put across your trades. There are also brokerage charges involved in security transactions. It is, however, important to buy a brokerage plan best suited for your trade volumes in a day.

  • Step 2: Based on your knowledge and market research, you speculate that prices of stock X will rise today. You will buy a lot of that stock at price ‘A’ and wait for a couple of hours, timing the market, to see a potential rise in the stock prices.

  • Step 3: If your speculation holds true, the price of Stock X will increase to price “A+1”. Seeing an opportunity to earn profits, you will immediately put in a sale trade of your earlier purchased stock lot, and pocket your day profit.

  • Step 4: Please note, in intraday trading transactions, you have to specifically mention that you are placing an intraday trade. Almost all trading platforms have the functionality to automatically square off the specified intraday trading transactions automatically if they are not done manually by you.


If you see yourself falling under the bracket of an ideal candidate for intraday trading, wait no more! Intraday tradingworks in a simplistic manner, and the only ask is for you to gain enough skills to place trades correctly and earn profits through the market.

Disclaimer: ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.

Most Popular

  • 19 Oct 2021
  • ICICI Securities

Benefits of Forex and Currency Trading

The foreign exchange market is really big in terms of liquidity, accessibility and nature. It is possible to purchase and sell any currency over the counter.

  • 19 Oct 2021
  • ICICI Securities

Role of Commodity Market In India

Commodity markets have been around for several years now. However, it was only in 2003 that the regulators permitted exchange-traded mechanism. 

  • 19 Oct 2021
  • ICICI Securities

Things To Keep In Mind While Trading In Agri Commodity Futures

Agri commodity trading is one of the major attractions of the commodity market. Those who are keen to meet their long-term financial goals are particularly interested in agri commodity trading.

  • 19 Oct 2021
  • ICICI Securities

Types Of Foreign Exchange Market

The foreign exchange market, also known as the forex market, is a global marketplace for trading in currencies. 

  • 13 Oct 2021
  • ICICI Securities

10 Intraday Tips for Beginners

Beginning your intraday trading journey can be difficult without the right guidance. While every individual must conduct his own research and devise a unique trading strategy, here are some handy tips for beginners.

  • 13 Oct 2021
  • ICICI Securities

9 easy ways to save more and spend less

Whether you're finding it challenging to keep up with your monthly expenses, saving for a large purchase or waiting to take a much-needed family vacation sometime in the future, you need to start saving now to achieve your goals. Click here to read how these simple tips can help you spend less on things you don't need and SAVE more to strengthen your financial health.

  • 13 Oct 2021
  • ICICI Securities

8 inside secrets to getting rich that you don't know

What does it mean to be rich? Some rich folks would say it all boils down to hard work and success, but playing smart with money is a tip they may not divulge. Click here to read on the eight inside secrets to getting rich and staying that way.

  • 13 Oct 2021
  • ICICI Securities

6 Tips to enhance your home loan eligibility

Most home buyers are unable to purchase a house outright due to the price tag attached to it. A home loan comes in handy to help you pay off over time. If you’re looking to increase your chances of home loan approval, let’s look at these six critical financial steps.

  • 13 Oct 2021
  • ICICI Securities

5 tips for investing in IPO

An IPO, or Initial Public Offering, is an offer through which a private company sells a portion of its shares to the public for the first time on the stock exchange.

  • 13 Oct 2021
  • ICICI Securities

5 Sectors that are Likely to Sweep the Market in 2021

Investors keep a close watch on sectors that make big news. To choose suitable securities to invest in, you need to understand the market movements and learn about their impact on specific sectors.

Open an Account

Sign Up for Free


Please use the mobile no registered with Aadhaar.

OTP sent to +91 1234567890

Didn’t received OTP? Resend



Get Research Backed Recommendations.

Download The app now

or Scan below QR Code To download app