Advantages and Disadvantages of Intraday Trading

Advantages Of Intraday Trading

No need to pay full price of the stock while trading. You need to pay only a part amount, this amount will be differ as per the brokers. For example, if you have Rs. 10000/- you can able to buy stocks upto Rs.100000/- (1 Lakh). So, you can gain more by investing less.

Intraday trading will give you profit with falling stock price too. You need to sell the stock at higher price(you don’t need to buy it before, you can directly sell them) and buy (cover the order) the stock at lower price. Selling and buying or buying and selling must be closed before the closing of the market. Intraday trading time will be differ with broker policies. Some brokers may urge to close(cover) the order before 30 mins or 40 mins of the market close.

The brokerage of the intraday trading is always lower than the delivery trading.

You will get your money(with profit or loss) back after market closes every day. So you can start a fresh trading in next morning.

Disadvantages Of Intraday Trading

The biggest disadvantage of intraday trading is the time frame. You have to sell the stocks within a day. So, if the stock loses price you are sure to loose money
Solution: You can convert Intraday stocks to delivery stocks. But you may need to pay the full amount.(Because you have paid a part amount in Intraday for that stock).


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One Response to “Advantages and Disadvantages of Intraday Trading”

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