There are multiple practices in the share market to generate returns. You might be familiar with the traditional method of buying and selling securities. It includes buying and holding securities for days, weeks, or months to make profits.
However, other trading methods can also help you reap profits. Swing trading, margin trading, scalping, and value investing are a few methods used in the Indian share market. You must understand all these methods and use the right one according to share market situations.
Let us discuss intraday trading and how to choose the right broker.
Comprehending the Basics of Intraday Trading
You must be aware of the traditional trading technique of holding stocks. However, you can also decide to buy/sell them on the same day. Intraday trading (also known as day trading) refers to buying and selling securities on the same day before the stock exchange closes.
Intraday trading aims to benefit from sudden or sharp price changes in the stock market. It includes holding securities for a few hours, minutes, or even seconds. Intraday trading requires experience and attention to detail because you are looking to take advantage of sudden price changes. You might fail to make a profit in intraday trading by missing a sudden price change.
With an online trading platform, you will take a position in the stock market. Before the end of the day, you must close your position in the share market via intraday trading. There is no compulsion to trade only shares via intraday trading. You can buy/sell options, currencies, commodities, and other securities via intraday trading in India.
Another misconception associated with intraday trading in India is that you don’t need a Demat account. Contrary to popular belief, you must apply for both Demat and trading accounts. A Demat account is mandatory even if you decide to hold shares for a minute or an hour. Intraday trading is similar to online trading share market. The only difference is the amount of time securities are held before sale.
Choosing the Best Intraday Stock Broker in India
Without help from a stockbroker, you cannot indulge in intraday trading. A stockbroker will provide you with a trading account essential for trading securities on exchanges. Similarly, a broker will provide you with a Demat account to hold securities and a trading platform for research purposes. You need a reputed stockbroker on your side to succeed in the share market. Here’s how to choose the best broker for intraday trading in India:
- Understand the brokerage charges associated with intraday deals. For every share market transaction, you will pay a flat fee or a percentage amount to the broker. It is ideal to choose a broker that applies minimal charge on every intraday transaction.
- Choose a stockbroker that offers you a new-age trading platform for intraday trading. A trading platform does much more than provide access to trading and Demat accounts. New-age trading platforms can offer research support to investors, thus allowing them to make data-backed decisions. Even if you do not indulge in share market analysis, the trading platform will break it down for you.
- You can check for the margin trading option before choosing a stockbroker. The margin trading option allows you to get funds from the stockbroker as a loan. You can use the amount received from the broker to invest in more securities.
- Check for the order types supported by the stockbroker. For example, a stockbroker supporting share trading in the intraday market might not be the ideal choice. Choose one that allows you to trade shares, commodities, options, and other securities in the intraday market.
In a Nutshell
Intraday trading involves taking and closing positions in the stock market on the same day. Even if you don’t close the position, it is automatically closed with the intraday trading option. Religare Broking is a trusted broker that can help you with the online trading share market. Choose Religare and succeed as an intraday trader!
