Intraday Trading

Intraday trading is an investing strategy many investors employ in the stock markets with a view to make quick profits in a short time without owning a stock.

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What is Intraday Trading?

Intraday traders buy and sell stocks of a company on the same market day to benefit from the price movements.

There is no delivery of shares in the demat account as the shares are traded within the trading day itself, also called day trading.

However, trader must be mindful to square off the buy or sell trade within the same day cut off time to avoid delivery trade by any reason.

If the trader fails to do so, your broker may square-off your position. Long term investing in the stock market is ideal to create wealth over a long horizon.

Intraday trading is used as a tool to earn profits in short time using market patterns, charts and indicators. 

How it works?

Intraday Traders must have a view on the stock’s movement, do their own research  and have a high risk appetite. 

If you place a margin of Rs 10,000, you can borrow a maximum up to Rs 50,000 from us.

Leverage

Intraday trades rely on very small movements in a stock’s price, hence higher the number of shares purchased, higher the profits. Often Intraday traders use leverage i.e. borrow funds from broker to increase the capital invested and multiply the profit. You must place a margin from your pocket and avail credit from the broker. Rupeezy offers 5x or five times leverage on your funds. 

Benefits of Opening an
Account with Rupeezy

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Free Account Opening

Open a demat and trading account with zero account opening fee

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FREE equity delivery trading

This is the real deal, zero equity delivery trading brokerages charges.

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MTF(Pay Later) at 0.03% interest per day.

Enjoy the lowest ever MTF margin funding interest rate at 0.03% per day with annual subscription. Trade with up to 5x margin

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Trade with zero cash

Place your stocks as collateral for funds and trade with zero cash from your pocket

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Trade directly through charts

Make accurate and efficient trading decisions with trading through charts directly

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Invest in upcoming IPOs

Benefit from new IPO opportunities with online IPO investment in a few clicks.

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Trade with advance trading features

Trade in options with Option Chain, Options Greeks and PayOff Graphs for real time analysis and smart decisions

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FREE Strategy Builder feature

Advance Options Strategy Builder with 11 readymade strategies to choose from, totally FREE

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Up to 5x margin on equity delivery

Place a small amount upfront and we give you up to 5x funding

How to apply for
an IPO at Rupeezy?

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Go to www.rupeezy.in, click open an
account.After adding your details, click
eKYC verification.

Select the stock you want to purchase
Upload your documents. E-Sign Aadhar
through OTP, add nomination.

Go to My Watchlist, click Search. Select
the stock you want to purchase or sell

In Place Order, select ‘Intraday’,  Enter
Quantity and Price and select Buy

Check Pricing for
Intraday Trading

We bring a never-before offer for you to make
trading efficient and cost effective.

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Brokerage

Equity Delivery : Rs 0 per order | 0.2% on MTF

Equity Intraday : 0.03% or Rs. 20/order whichever is lower | 0.2% on MTF

Futures & Options : Rs 20 per order

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STT/CTT

Equity Delivery : 0.1% on buy & sell

Equity Intraday : 0.025% on the sell side

Futures : 0.0125% on sell side

Options : 0.0625% on sell side (on premium)

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GST

18% on (brokerage + transaction charges + SEBI charges)

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SEBI

Rs 10 / crore

Documents required to Open Free Demat Account

bank

PAN Card

income

Aadhar Card

Frequently Asked Questions

Ans. The profits from day trading are treated as business income. The gains are added to your annual income and taxed as per the tax slabs applicable. The tax treatment of profits from long term equity shares is different from trading profits. The capital gains tax is applicable for equity shares based on the time period for which shares were held. Trading income is categorised as speculative business income and added to annual income for taxation. Equity trades that are delivery based are categorised as non- speculative business income. The profit from non speculative securities trading is also added to annual income for taxation. e.g your annual salary is Rs 8,00,000 Annual Intraday trading profits: Rs 1,00,000 Interest Income Rs 1,50,000 Currency trading profits: Rs 50,000 Options Trading profit: Rs 1,00,000 Equity Capital Gains: Rs 1,00,000 Total taxable income : Rs 12,00,000 Capital Gains Tax on Rs 1,00,000 as per eligibility in STCG or LTCG.

Ans: Stock trading has gained popularity in recent times with online trading apps, easy & paperless account opening process, access to information and research and attractive brokerage offers. Intraday traders look at profit potential in a short time, with less capital and effort. However, you must consider below points with equity trading: Risk appetite: Intraday trading relies on market movements on a single day and can be prone to unexpected events, abrupt price fluctuations and sentiment based volatility. As a trader you must have a higher risk appetite to absorb sharp movements and even losses. Price Target & Stop Loss: Most trading apps allow you to place profit targets on your stock as well as a stop loss order. With limits placed on upside as well as downward price movement, you need not check the stock price every minute. The moment stock reaches target level, stock is automatically sold. Similarly if the price is falling, your loss is limited by way of a limit place on loss. Trading allocation: As a beginner, it is pertinent to allocate a fixed amount from your overall portfolio for Intraday trading. This will ensure you do not dip into all your savings for investments with higher risks. A balanced asset allocation will give you peace of mind and better returns from different instruments with different risk factors Research: As an equity trader, thorough research into a stock’s fundamentals, market movements, charts, patterns and models is essential. The better armed you are with market information, the better will be your trading skill and knowledge. Available Time: Intraday trading involves being present during the market hours and track the movement of selected stock closely. A trader must have a couple of hours available for trading during the market hours to trade actively.

Ans: For day trading with margin facility, a Margins Penalty is levied for not keeping sufficient margin in the trading account. A trader is required to always have enough margin in their trading account. In case of any shortfall, funds must be added without delay. Margin shortfall Penalty on shortfall (< ₹1 lakh) And (< 10% of applicable margin) 0.5% (>= ₹1 lakh) Or (>= 10% of applicable margin) 1.0% A 5% penalty is applicable for any margin shortfall for more than 3 consecutive days. A 5% penalty for more than 5 incidents of shortfall in a calendar month.

Ans: Rupeezy offers you best in the market deal - Zero intraday trading brokerage charges on equity. You can also avail 5x margin for Intraday trades and 5x margin for equity delivery at 0.03% interest per day.

Ans: You can place Intraday trades between 9:15 am and 3:15 om. The trade must be squared off before the market closes or it will result in stock delivery in your demat account. However markets are volatile upon opening, you can wait one hour to begin trading as price patterns emerge.

Ans: Day trading is popular for making quick profits without a large upfront corpus, develop equity investing skills and trade at low costs. High Liquidity: In Intraday trading the positions are squared off the same day, hence your funds are not locked for long term. You have high liquidity in case of any cash need. Low Cost: Intraday trading charges are much lower compared to delivery trades as there is no delivery of shares to demat. Capped Risk: Intraday trades are squared off on the same day and traders’ losses are capped to the price fluctuation on the particular day whereas with regular trading, shares are held for longer periods and prone to higher price volatility and unforeseen adverse market conditions. Profitability: Since the capital is churned more often in Intraday trading, the probability of earning higher returns is more in Intraday trades. Even in bearish markets, investors can gain through short selling.

Ans: For trading intraday in equities, stock selection is vital. Select stocks with liquidity for easy buying and selling. The volume of shares traded indicates its liquidity. Stocks with some price movement and volatility give better chances of arbitrage for traders.

Ans: Traders use charts and patterns to gauge market and stock price directions. There are different indicators used as a tool that use data to decide a trading strategy and maximise profits: Moving Averages: Moving average chart joins the average closing price of a stock on a graph for a long period of time. This indicator makes it easy to understand the price movement trend over a period of time in a stock. Bollinger Bands: Bollinger Band is a variant of Moving Average indicator. It charts three lines for a stock; the average closing price along with upper and lower limit. It indicates the range of movement in price in both directions from the average and helps understand how volatile a stock is. Momentum Oscillators: At times it is not clear if there is bearish or bullish trend. Momentum oscillator is charted in 0 to 100 range to study if a stock is beginning a new trend. Relative Strength Index (RSI): RSI is plotted as a range between 0 to 100 in an index form. The index moves with price rise or fall. Once an index reaches a certain level, traders can make buy or sell decisions.

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