Intraday
Buying and selling the same share on the same day, without taking it into your demat account.
Intraday means a trade opened and closed on the same day. You buy and sell before the market shuts, so the shares never reach your demat account. It’s trading, not investing: the bet is on the next few hours, costs come on every trade, and tax forms treat it as a speculative business rather than capital gains.
Questions people ask
What is intraday trading?
Intraday trading means buying and selling the same share within one trading day, so you never take delivery of it in your demat account. The aim is to profit from price moves within the day.
How is intraday trading taxed?
Income tax return forms treat intraday trading as a speculative business, reported separately from capital gains on shares you hold as investments. Check the current rules on incometax.gov.in.
Is intraday trading risky?
Yes. Prices within a day are mostly noise, and costs are paid on every trade. SEBI's studies of individual traders in futures and options found most of them lost money.
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