How to Do Intraday Trading in India: A Beginner’s Guide
Blog by Aliceblue News Desk
08 October 2026
17 minutes
A stock can rise or fall sharply within a few minutes. That does not make every price movement a trading opportunity. Intraday trading means buying and selling a stock on the same trading day. To begin, you need a trading account, a liquid stock, a clear trade plan, a stop loss, and a fixed limit on how much you can lose.
This guide explains how intraday trading works in India, how to select stocks, how MIS orders and margin work, how to calculate trade quantity, what charges apply, and which mistakes beginners should avoid.
To do intraday trading, choose a liquid stock, study its price and volume, decide your entry, target, stop loss, and quantity, and place the order using the intraday product type, commonly called MIS. Close the position before your broker’s cut-off time. Margin may reduce the upfront amount required, but profit or loss is based on the full position value. Brokerage, taxes, slippage, and fast price movements can reduce your returns.
Table of Contents
- What is intraday trading?
- How does intraday trading work?
- How to do intraday trading step by step
- What is the best time for intraday trading?
- Intraday trading example with numbers
- Intraday trading rules in India
- Advantages and risks
- Intraday trading tips for beginners
- Intraday trading versus delivery trading
- Common mistakes to avoid
- Who should do intraday trading?
- Frequently asked questions
What is intraday trading?
Intraday trading is the practice of buying and selling a share during the same trading day. You do not plan to hold the position overnight. The aim is to benefit from a short-term movement in the share price.
For example, you buy 100 shares at ₹500 and sell them at ₹510 on the same day.
Your gross profit is:
(₹510−₹500)×100=₹1,000
If you sell at ₹495 instead, your gross loss is:
(₹495−₹500)×100=−₹500
These amounts are before brokerage, taxes, exchange charges, and slippage.
Intraday trading is also called day trading. It differs from delivery trading, where you buy shares and hold them in your demat account beyond the trading day.
How does intraday trading work?
Every intraday trade has four basic parts.
- Entry: The price at which you buy or sell.
- Stop loss: The price at which you exit if the trade moves against you.
- Target: The price at which you plan to book a profit.
- Square off: Closing the open position before the trading day ends.
Suppose you buy a share at ₹500, place a stop loss at ₹495, and set a target at ₹510. If the price falls to ₹495, you exit to control the planned loss. If it reaches ₹510, you may exit with a profit.
The final result can differ from the plan. During a fast price movement, a stop loss may be executed at a different price.
Basic terms for beginners
- Liquidity means how easily you can buy or sell a share without causing a large price change. Stocks with regular trading activity are generally easier to enter and exit.
- Bid price is the highest price a buyer is offering.
- Ask price is the lowest price a seller is willing to accept. The difference between the two is the bid-ask spread.
- Margin is the amount your broker asks you to keep for taking a position. The required margin can vary according to the stock, product type, broker, and market conditions.
- Leverage allows you to control a larger position with a smaller upfront amount. It can increase gains, but the loss is also calculated on the larger position.
- Slippage occurs when your order is completed at a price different from the one you expected.
- VWAP means volume-weighted average price. It shows the average traded price after considering both price and volume. Traders sometimes compare the current price with VWAP to study short-term strength or weakness.
How to do intraday trading step by step
1. Open a trading account
You need a trading account linked to your bank and demat accounts. Before placing a trade, learn how to use:
- Market orders.
- Limit orders.
- Stop-loss orders.
- Charts.
- Price alerts.
- Margin information.
- Trade reports and contract notes.
Also check your broker’s latest brokerage, square-off, and product rules.
2. Understand MIS and CNC
Brokers commonly show separate product types when you place an equity order.
MIS, or Margin Intraday Square-off, is generally used for trades intended to be closed on the same day.
CNC, or Cash and Carry, is generally used for delivery-based share purchases.
Product names and rules may differ between brokers. Check the order screen before submitting a trade. Selecting the wrong product type can affect margin, settlement, and automatic square-off.
3. Build a small watchlist
Start with a few actively traded shares instead of scanning the entire market. Look for shares with:
- Regular trading volume.
- A reasonably narrow bid-ask spread.
- Clear price movement.
- Sufficient buying and selling activity.
- No trading restrictions that you do not understand.
Do not choose a stock only because its price has risen sharply. A fast rise can reverse quickly.
4. Check price, volume, and news
Before entering a trade, check the stock’s price movement and trading volume. Volume shows the number of shares traded during a period. It can help you understand whether a price movement is attracting trading interest.
Also check for:
- Company results.
- Corporate actions.
- Management announcements.
- Regulatory decisions.
- Sector news.
- Broader market movement.
News can move a stock faster than a chart pattern develops.
5. Study the chart
Beginners can start with a few basic chart concepts.
- Support: A price area where buying interest has appeared earlier.
- Resistance: A price area where selling pressure has appeared earlier.
- Trend: The general direction of the price.
- Volume: The number of shares traded.
- VWAP: The average traded price after considering volume.
You do not need several indicators for one trade. Start with one setup, understand it, and record the result.
6. Decide why you are entering
Complete this sentence before placing the order:
I am entering this trade because
Your reason could be a breakout above resistance, a bounce from support, or a trend continuation supported by volume.
If you cannot explain the reason clearly, skip the trade. Do not base a decision only on a message from a WhatsApp group, social media post, or unsolicited tip.
7. Set the entry, stop loss, and target
Write down these levels before entering:
- Entry: ₹500.
- Stop loss: ₹495.
- Target: ₹510.
The stop loss should be placed where your trading idea becomes invalid. Do not move it farther away simply because you do not want to accept a loss.
8. Calculate the quantity
Your quantity should depend on the amount you are willing to lose.
Use this formula:
Quantity = Maximum loss allowed / Entry Price -Stop Loss Price
Suppose you are willing to lose ₹500 and the difference between your entry and stop loss is ₹5.
₹500÷₹5=100 shares
Your quantity would be 100 shares before allowing for charges and slippage.
A commonly used personal risk guideline is to limit the planned loss on one trade to about 1 percent of your trading capital. This is not a SEBI requirement and may not suit every trader.
For example, if you have ₹1,00,000 set aside for trading, 1 percent would be ₹1,000 as the maximum planned loss on one trade.
9. Check the margin
The order screen will show the margin required for the trade. The amount may differ between stocks and may change when market conditions change.
Suppose the position value is ₹50,000 and the margin shown is ₹10,000. Your price exposure is still based on ₹50,000, not only ₹10,000.
Available margin is not the same as affordable risk. Using the full amount can place too much of your trading capital at risk.
10. Place the order
Select the stock, exchange, quantity, price, and product type. Check the details once before submitting the order.
A market order is completed at the available market price. The final price may differ from the price visible when you place the order.
A limit order is completed only at your chosen price or a better price. It may not be completed if the market does not reach that price.
11. Place the stop loss
A stop loss helps you exit when the trade moves against you. It does not guarantee the exact exit price during a fast movement.
If the stop loss is reached, exit according to your plan. Do not keep moving it away to avoid accepting a loss.
12. Monitor the position
Watch the position after entering, but do not react to every small price movement. Follow the levels decided before entering.
If the target is reached, you may book the planned profit. If the stop loss is reached, exit. If neither level is reached, close the position before the broker’s cut-off time.
13. Square off before the cut-off time
The regular NSE equity trading session runs from 9:15 AM to 3:30 PM. The broker’s intraday square-off cut-off may be earlier. Check the latest schedule provided by your broker.
If you do not close the position, the broker may automatically square it off. The order may be completed at an unfavourable price, and additional charges may apply.
14. Record the trade
Note down:
- Why you entered.
- Entry and exit price.
- Quantity.
- Stop loss and target.
- Gross profit or loss.
- Brokerage and other charges.
- Whether you followed your plan.
- What you would change next time.
A trading journal can help you identify repeated behaviour, such as entering too early, trading after a loss, or taking too many positions.
What is the best time for intraday trading?
There is no single best time for every trader or strategy. Market activity often changes during the day.
Time period | What may happen | Beginner approach |
9:15 AM to 9:30 AM | Fast movement as overnight news and opening orders enter the market | Observe unless you have tested an opening strategy |
9:30 AM to 10:30 AM | The early direction may become clearer, but price movement can remain fast | Wait for a planned setup |
10:30 AM to 1:30 PM | Price movement may slow, and false breakouts may occur | Trade only when the setup is clear |
1:30 PM to 3:15 PM | Activity may increase as traders adjust positions before the close | Control risk and avoid impulsive entries |
After your broker’s cut-off | Intraday positions may be squared off | Do not wait until the final minute |
These are general market patterns, not fixed rules. A stock can behave differently because of news, liquidity, market sentiment, or company-specific events.
Opening range breakout
Opening range breakout is one method used by intraday traders. The trader marks the highest and lowest price during the first 15 or 30 minutes and then observes whether the price moves beyond that range with volume.
This is a description of a trading method, not a recommendation. Test it through paper trading before using real money.
Other commonly searched intraday approaches include:
- Support and resistance bounce.
- VWAP pullback.
- Moving average trend trade.
- Breakout with volume.
A setup only defines when a trader may act. It cannot decide the final result.
Intraday trading example with numbers
Suppose a trader has ₹20,000 set aside for intraday trading.
Particular | Amount |
Entry price | ₹500 |
Quantity | 100 shares |
Total position value | ₹50,000 |
Stop loss | ₹495 |
Target | ₹510 |
Planned loss before charges | ₹500 |
Planned profit before charges | ₹1,000 |
The position value is:
₹500×100=₹50,000
If the stock reaches ₹510:
(₹510−₹500)×100=₹1,000
If it falls to ₹495:
(₹495−₹500)×100=−₹500
The planned risk-to-reward ratio is 1 to 2. The trader is risking ₹500 to pursue a possible gross profit of ₹1,000.
The final result also depends on:
- Brokerage.
- Securities transaction tax.
- Exchange transaction charges.
- Goods and Services Tax.
- Stamp duty.
- SEBI charges.
- Slippage.
Illustrative charge calculation
Alice Blue’s pricing page currently lists equity intraday brokerage as a flat ₹20 per executed order or 0.05 percent of the order value, whichever is lower.
For a buy value of ₹50,000 and a sell value of ₹51,000:
Charge | How it is calculated | Amount |
Brokerage | Based on the broker’s current pricing plan | Check current rate |
Securities transaction tax | Applicable according to the transaction and current rules | Check current rate |
Exchange transaction charge | Based on turnover and exchange | Check current rate |
Goods and Services Tax | Applied to specified services and charges | Check current rate |
Stamp duty | Applied according to current rules | Check current rate |
SEBI charges | Based on the applicable turnover rate | Check current rate |
Slippage | Difference between expected and actual execution | Depends on the trade |
The exact net cost should be calculated using the latest broker pricing page, applicable government rates, exchange charges, and the final contract note.
Net profit or loss=Gross profit or loss−All applicable charges
SEBI reported that 71 percent of individual traders in the equity cash intraday segment incurred net losses in FY 2022 to FY 2023. The study also reported that loss-making traders spent an additional 57 percent of their trading losses on trading costs. This shows why results should be assessed after costs.s
Intraday trading rules in India
Rules can differ according to the market segment, broker, order type, and product. Keep these points in mind:
- Intraday positions are intended to be closed on the same trading day.
- Brokers collect applicable margins before allowing trades.
- Margin is not the same across all stocks.
- A broker may automatically square off an open position after its cut-off time.
- A market order may be completed at a different price from the one visible on screen.
- Brokerage and other charges reduce the final result.
- Equity cash trading and futures and options trading have different rules.
- No intraday strategy can guarantee a profit.
- Trading capital should not come from money needed for household expenses or emergencies.
Equity intraday and futures and options are different
In equity intraday trading, you buy or sell shares in the cash market. In futures and options, you trade contracts linked to an underlying share or index.
Futures and options may involve:
- Fixed lot sizes.
- Expiry dates.
- Premium changes.
- Time decay in options.
- Larger exposure through leverage.
- Different margin requirements.
SEBI’s separate study on equity derivatives found that 93 percent of individual traders incurred losses during FY 2022 to FY 2024. This figure applies to equity derivatives and not cash equity intraday trading. The two statistics should not be combined.
Advantages of intraday trading
Intraday trading may suit someone who wants to:
- Participate in short-term price movements.
- Close positions before overnight news affects the market.
- Use a plan based on price and volume.
- Avoid holding a position for weeks or months.
- Practise a short-term method with controlled position sizes.
The attraction is the short holding period, not a promise of regular income. Margin may reduce the upfront amount required, but it does not reduce the loss caused by an adverse price movement.
Risks and limitations
1. Fast price changes
A share can move sharply after news or a sudden change in market sentiment. The price can move beyond your intended stop loss before the order is completed.
2. Leverage
Leverage allows you to take a larger position with less upfront money. A small percentage movement can therefore create a large rupee loss.
3. Trading costs
Frequent trades create more charges. A strategy that appears profitable before costs may produce a net loss after costs.
4. Low liquidity
A low-volume share may have a wide spread or too few buyers and sellers. You may not be able to exit at the price shown on your chart.
4. Emotional decisions
Fear can make you exit a profitable trade too early. Greed can make you ignore your target. After a loss, the urge to recover quickly can lead to a larger trade.
5. Time requirement
Intraday trading requires attention during market hours. It may not suit someone who cannot monitor an open position.
6. No fixed income
Intraday trading does not provide a regular salary or daily return. Some days may offer no suitable trade. Staying out of the market is also a valid decision.
Intraday trading tips for beginners
Before placing a trade, answer these questions:
- Why am I entering?
- What is my entry price?
- Where will I exit if I am wrong?
- How much can I lose?
- When will I close the trade if neither the target nor the stop loss is reached?
Follow these habits:
- Begin with a small quantity.
- Use only money you can afford to lose.
- Keep a small watchlist.
- Avoid using all available margin.
- Set a daily loss limit.
- Stop trading after reaching that limit.
- Include all charges in your calculations.
- Do not trade to recover an earlier loss.
- Use paper trading before using real money.
- Test one setup instead of changing strategies every day.
- Do not rely on tips from social media groups.
- Review your trades every week.
- Learn technical analysis and risk management before increasing your position size.
Intraday trading versus delivery trading
Parameter | Intraday trading | Delivery trading |
Holding period | Usually closed on the same day | May be held for days, months, or years |
Main objective | Benefit from short-term price movement | Participate in longer term price appreciation or income |
Product type | Often labelled MIS | Often labelled CNC |
Share ownership | Not intended for long-term holding | Shares are credited to the demat account after settlement |
Monitoring | Usually requires attention during market hours | May require less daily monitoring after research |
Capital requirement | Margin may be available subject to rules | Usually requires the full purchase amount |
Main risks | Fast movement, leverage, slippage, and overtrading | Company performance, market cycles, and longer holding periods |
Suitable for | Active traders with time and discipline | Investors with longer-term goals |
Neither method is automatically better. Choose the method that fits your goal, available time, market knowledge, risk tolerance, and ability to follow a plan.
Common mistakes to avoid
1. Entering without a reason
A stock moving quickly is not a trading setup by itself. Decide what you are waiting for before placing the order.
2. Using all available margin
The maximum position allowed by the broker may be too large for your account. Size the trade according to your maximum loss.
3. Moving the stop loss farther away
A wider stop loss can turn a manageable loss into a damaging one. Exit when the trade idea fails.
4. Ignoring charges
A series of small gains can disappear after brokerage and taxes. Review the contract note and calculate net results.
5. Trading illiquid shares
The spread may be wide, and the order may not be completed at the expected price. Begin with shares that trade regularly.
6. Averaging a losing trade
Adding more shares after a fall increases your exposure. It does not guarantee that the price will recover.
7. Revenge trading
A larger trade after a loss is usually an emotional response. Follow your daily loss limit instead.
8. Waiting until the last minute
A technical problem or sudden price movement can delay your exit. Close intraday positions before the cut-off time.
9. Treating futures and options like equity
Options and futures have different risks and calculations. Learn them separately.
10. Copying another trader
A trade that suits another person may not suit your account or risk tolerance. Use market ideas for research, not as automatic instructions.
Who should do intraday trading?
Intraday trading may suit you if you:
- Can monitor the market during trading hours.
- Understand basic order types.
- Can accept a small loss without changing your plan.
- Have a written risk limit.
- Are willing to maintain a trading journal.
- Can wait for a setup instead of trading constantly.
It may not suit you if you:
- Need predictable returns.
- Cannot monitor an open position.
- Are using borrowed money.
- Find it difficult to accept losses.
- Need trading profits for regular expenses.
- Have not understood margins and charges.
If your goal is long-term wealth creation and you do not want to monitor prices during the day, delivery-based investing or mutual funds may be worth studying based on your goals and risk profile.
Conclusion
Intraday trading means buying and selling a stock within the same trading day. Begin by selecting liquid shares, checking price and volume, deciding your entry and exit levels, calculating quantity based on your maximum loss, and choosing the correct product type. Margin can increase your exposure, while brokerage, taxes, slippage, and emotional decisions can reduce the final result. Start small, practise before using real money, and make risk control part of every trade.
Frequently asked questions
Blog by Aliceblue News Desk
