---
title: "What is intraday trading?"  
description: "What is intraday trading?"  
author: "Sanjay Goenka"  
published: 2022-08-26  
canonical: https://answers.mindstick.com/qa/98136/what-is-intraday-trading  
category: "finance"  
tags: ["finance"]  
reading_time: 2 minutes  

---

# What is intraday trading?

What is intraday [trading](https://www.mindstick.com/blog/302522/the-basics-of-forex-trading-what-you-need-to-know-to-get-started)?

## Answers

### Answer by Subhamay Ganai

***Intraday trading***is a financial term used to describe the act of buying and selling securities within the same day. Intraday traders seek to profit from short-term price fluctuations in the market, by buying and selling securities multiple times throughout the day. In order to be successful, intraday traders must have a keen understanding of [market](https://answers.mindstick.com/qa/97992/what-is-the-market-and-its-types) dynamics and a solid trading strategy. There are a variety of intraday trading strategies that traders can use to try and profit from the market.

#### Some common strategies include:

- [**Scalping**](https://en.wikipedia.org/wiki/Scalping#:~:text=Scalping%20is%20the%20act%20of,the%20scalp%20being%20a%20trophy.): Scalping is a strategy whereby traders attempt to profit from small, rapid price movements in the market. Scalpers will often place a large number of trades throughout the day, and will exit their positions quickly once they have made a profit.
- **Momentum trading**: Momentum trading is a strategy that involves buying and selling securities that are experiencing a strong price movement. Momentum traders hope to ride the wave of the price movement and profit from the resulting price changes.
- **Trend following**: Trend following is a strategy that involves taking a position in the direction of the overall market trend. Trend following can be a profitable strategy in both rising and falling markets.
- **Range trading**: Range trading is a strategy that involves taking a position in a security that is confined within a defined range. Range traders hope to profit from the security's price movements within the defined range.
- **News trading**: This strategy involves trading on the release of [economic](https://www.mindstick.com/articles/326947/economic-war-between-utility-bidders-and-gas-prices) news.

![What is intraday trading?](https://answers.mindstick.com/questionanswer/62d2b41b-11b4-41ea-b01b-7415fa9ff557/images/c59af21f-eb0e-413e-8d9d-c88161cf73af.jpeg)

#### Conclusion

*Intraday trading* can be a risky endeavor, and traders must be careful to manage their risk exposure. Many intraday traders use stop-loss orders to limit their downside risk. Stop-loss orders are placed at a price that is below the current market price, and will automatically sell the security once the price reaches the stop-loss price.

Intraday trading can be a profitable way to trade the markets, but it is important to remember that it is a high-risk activity. Be sure to develop a solid trading strategy and risk management plan before attempting to trade intraday.


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Original Source: https://answers.mindstick.com/qa/98136/what-is-intraday-trading

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