Intraday trading also known as day trading, is type of trade that happens within a day. So this is what happens, when you are placing your trades as intraday:
- You can buy or sell shares even for a minute or hour or before the market gets closed.
- Suppose PNB(Punjab national bank) is trading at Rs.40, you bought 1000 shares now you can sell this shares just after you bought it or can keep it for 1 or 2 hours or before the market gets closed.
- You have to square off (to close your opened position) before the market gets closed same day.
- Brokers usually have a dedicated team named RMS(risk management system), they will auto square off your all opened position, if you do not do it from your end, at whatever market price that share is trading.
- Brokers usually do auto square-off before the exact market closing time mostly it happens from 3:15 till 3:25.
- So whenever you place order as intraday keep in mind to select MIS(Margin intraday square-off). This is the type of order you select while trading intraday.
- You can convert your intraday position to delivery also known as CNC(Cash and carry), however you should have complete margin amount in your trading account to do so before market gets closed.