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What Is Intraday Trading? A Beginner’s Guide to Fast-Paced Markets

4/4/20253 min read

What Is Intraday Trading? A Beginner’s Guide to Fast-Paced Markets (India 2025)

Intraday trading, also known as day trading, is one of the most exciting and fast-moving segments of the stock market. Unlike long-term investing, where positions are held for months or years, intraday traders buy and sell stocks within the same trading day — with the goal of profiting from small price movements.

In 2025, with advanced tools, algo platforms, and low-cost brokers, intraday trading in India has become more accessible than ever. However, it also comes with risks that require knowledge, discipline, and a sound strategy.

This blog is your step-by-step guide to understanding intraday trading in the Indian market.

What Is Intraday Trading?

Intraday trading refers to the practice of buying and selling financial instruments like stocks, derivatives, or ETFs on the same day, before the market closes. No positions are carried overnight.

The objective is to make quick profits from short-term price fluctuations using:

Technical analysis
News-based strategies
Volatility
High trading volumes

If you do not square off your position by market close (3:30 PM IST), most brokers auto-square it for you.

How Intraday Trading Works

Here’s a simple example:

You buy 100 shares of Company A at ₹500 each at 10:30 AM

By 2:00 PM, the price rises to ₹510

You sell at ₹510 and pocket a profit of ₹1,000 (excluding brokerage/taxes).

Since both buy and sell happen within the same day — it’s an intraday trade.

You must select ‘intraday’ as the order type while placing your trade.

Key Features of Intraday Trading

Margin and Leverage: Brokers offer up to 5–10x leverage. This amplifies both profits and risks.
High Liquidity Required: Best done on stocks with high volume and volatility.
Technical Analysis Heavy: Traders use candlestick charts, RSI, MACD, Bollinger Bands, etc.
Time-Sensitive: Positions are opened and closed within minutes or hours.

Intraday Trading vs Delivery Trading

Who Should Consider Intraday Trading?

Intraday trading is suitable for:

Experienced market participants
Traders with time to monitor charts
Those who understand risk management
Investors using small capital with leverage

It’s not recommended for complete beginners or people who cannot track markets during the day.

Tools Required for Intraday Trading in 2025

Brokerage Account: Use platforms like Angel One, Zerodha, Upstox, or One Solution’s advisory-integrated trading dashboard.
Technical Charting Tools: TradingView, ChartInk, or broker-integrated tools.
Market Scanner: For identifying volume spikes and breakout patterns.
News Feeds: Real-time updates from Moneycontrol, Economic Times, etc.

Key Strategies Used by Intraday Traders

Breakout Trading: Buying when the stock breaks resistance levels.
Reversal Trading: Catching trend reversals based on chart signals.
Momentum Trading: Riding high-volume, fast-moving stocks.
Scalping: Making multiple small trades to capture quick profits.
Gap-Up/Gap-Down Strategy: Trading based on opening price gaps.

Risks of Intraday Trading

High Volatility: Rapid price changes can result in large losses.
Overtrading: Frequent trades lead to high costs and poor judgment.
Leverage Risk: Borrowed capital increases both profit and loss.
Emotional Trading: Fear and greed often disrupt rational decisions.

That’s why risk management is non-negotiable. Use stop-loss, strict entry/exit rules, and never trade with borrowed money unless you fully understand the implications.

Final Thoughts

Intraday trading can be rewarding, but it’s not for everyone. It demands speed, discipline, and a solid understanding of market behavior. Without preparation, it can turn from an opportunity into a liability.

If you’re ready to explore day trading professionally, One Solution provides real-time advisory, technical training, and integrated execution support. Start with a demo, learn with a coach, and grow with confidence.