Benefits Of Intraday Trading

The investment trend in India is quite promising as the National Stock Exchange (NSE) declared 11 crore registered investors in 2025. Investors in the Bombay Stock Exchange (BSE) are also rising. These involve different kinds of investors, including intraday trades. If you are interested in making potential instant profit, you must learn the benefits of intraday trading.

A Quick Look at Intraday Trading

In the investment spectrum, you must have heard about intraday trading and might be curious about the benefits of intraday trading. Before that, you must understand how an intraday trade works:

• Also identified as day trading, this investment approach works by buying and selling securities in the stock market on the same day.
• Suppose you monitor the trend of a particular company’s stock and understand that it might rise in the short term.
• You buy 200 shares of that company at INR 250 when the market opens (at 9:15 IST). Now, you see the stock prices rising and sell them the same day for an instant profit.
• You must close the trading before the stipulated time, which is typically between 3:10 PM and 3:20 PM. However, the time depends on your broker and security segment.

Key Benefits of Intraday Trading

1. Immediate Profit Realisation

   If you can maintain emotional discipline, analyse the market carefully and invest at least 6 hours in intraday trading, there might be chances of reaping the following benefits:

   • If you are looking for an optimised return in the short term, an intraday trade might help you as it lets you capitalise on profitable price movements during the day.
   • Continuing with the example, suppose share prices rise to INR 260. Now, selling the shares brings you a profit of INR 2000 (200*INR 10) instantly before applicable charges.

2. No Overnight Risk

   The benefits of intraday trading also reduce the overnight risks, and here is how:

   • The securities market is highly volatile and sensitive to events like economic factors, geopolitical events, supply, and demand.
   • All these might lower your held stock’s prices even overnight, and selling them or closing the position if the prices rise safeguards you from losses.

3. Higher Offered Leverage

   If you are interested in intraday trades, another advantage of it is the leverage and here is a clear breakdown with an example:

   • You can harness the intraday trading benefits, as brokers offer high leverage. Suppose your broker offers a 5-times leverage and you have a capital of INR 1 lakh. You can hold a significantly larger position of INR 5 lakh during the day trading.
   • However, you must analyse the market carefully, as an adverse market movement might put such a large position in danger and result in subsequent losses.

4. High Liquidity and Volume

   Informed investment decisions in liquid stocks and high investor volume might result in profits:

   • When you participate in intraday trading, it is wise to create a position consisting of liquid stocks.
   • Liquid stocks with a daily volume of more than 1 crore on average might be beneficial for you.
   • Both the higher liquidity and volume thus let you enter and exit a position quickly once you realise a profit.

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5. Opportunity for Trading Both Sides

   With intraday trading, you can leverage the volatile nature of the market for a possible return:

   • When the market sentiment is bullish, you can adopt the strategy of buying securities and selling them at higher prices.
   • On the other hand, during a bearish sentiment, using the short-selling strategy might be profitable. Suppose you shortsell 80 shares of a company at INR 400 and buy them back at INR 370, earning a profit of INR 2,400.

Conclusion

There are multiple benefits of intraday trading that you might harness if you trade carefully by monitoring or analysing the market. You might earn instant returns, reduce overnight risks, enjoy liquidity, leverage and buy or sell securities based on market sentiments.

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Frequently Asked Questions

1. Can intraday trading be a good strategy for beginners?

Making an optimised return from intraday trading requires good market knowledge, learning risk management techniques, etc. Therefore, for beginners, it might be a riskier option.

2. Can intraday trading be more profitable than long-term investing?

If you are looking for quick returns, the benefits of intraday trading might bring you profits. However, it is prone to higher risks due to unexpected market swings, while long-term investments might bring you a stable return over time.

3. How does intraday trading allow for more flexibility?

When you invest in positions with higher volume, the chances of liquidity are higher. This is one of the flexibilities that intraday trading allows to realise a possible instant profit.

4. How can intraday trading benefit from market trends?

Intraday traders aim to capitalise on the profitable market movements, resulting in quick profit generation compared to long-term investment.