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  What is Stock Future ? How to trade in Stock Future ?
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What is Cash intraday or Equity intraday ? How to do Equity intraday trading ?
What is Cash intraday or Equity intraday ? How to do Equity intraday trading ?

Trading in equity or shares known as Cash intraday trading or Equity intraday trading. In equity intraday, we can buy and sell equity or shares same day, we need not to hold the equity or shares in our DMAT account.

Let us understand it with an example, suppose we have Rs. 10000.00 in our trading account and we want to buy the NSE stock DLF. Suppose DLF current market

price is 250.00, so maximum we can buy

[10000/250]=40

shares of DLF. Suppose we bought the DLF 40 quantity at Rs. 250 and stock moved to 253 same day after our buying and we have sold out all the 40 shares at 253. Now what is our profit ? Our profit will be

[253 (Sell price) - 250(Buy price)] x 40 [Quantity] = Rs. 120.00

So profit will be Rs. 120 but we have to pay brokerage, security transactions tax, stamp duty etc. which could be Rs. 10 to Rs. 15.

Most of the brokers providing extra margin for intraday trading. It could be 5 times to 10 times of our available trading account balance. If we have delivery in our DMAT account, then brokers giving extra margin. Suppose we have Rs. 10000 in our account then we can get 10 times margin for intraday trading. We can buy 400 quantity of DLF for intraday. Suppose we bought 400 shares of DLF at rs. 250 and sold out at Rs. 252.30 then our profit will be

[252.30 (Sell price) - 250(Buy price)] x 400 [Quantity] = Rs. 920.00

So profit will be Rs. 920 but we have to pay brokerage, security transactions tax, stamp duty etc. which could be Rs. 20 to Rs. 30.

It is not compulsory to buy only for intraday trading, if you think that stock will go down then you can sell the stock and you can buy later.But you will have to buy same day before market closing. It is known as short selling. Suppose we have the limit of Rs. 1 lacs and we shorted Tata steel 250 share at 325 and Tata steel came down to 321 after few hours then what will be our profit

325 (Sell price) - 321 (Buy price)] x 250 [Quantity] = Rs. 1000.00

So profit will be Rs. 1000 but we have to pay brokerage, security transactions tax, stamp duty etc. which could be Rs. 20 to Rs. 30.

Now I hope that Equity intraday trading concept is clear to you. If you want to share your view with us or having any kind of query and want to ask any question then you can post it here, as soon as possible, you will get the reply.You can directly write to us to email id "smileadvisory@yahoo.com"

 
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  rajeshp.k thanks for this article 24 jan 2013, 2:40 pm
       

 

 

 

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