Intraday trading deals with buying and selling of stocks on the same day, during the trading hours that are stipulated by the exchange. Stocks are bought and sold in large numbers strategically with the intention of booking profits in a day. An intra-day trader is a particular type of stock trader. This trader both opens and closes a new position in a stock in the same trading day. There are many reasons why a trader may do this: they could capitalize on a short-term rise in a security’s value, or short the security to capitalize on a drop in value. They also utilize leverage in order to amplify their returns, although this also increases their risk levels.
