What is intra-day trading?

Views 32KAug 9, 2023

Key points

● intra-day trading generally refers to the behavior that investors buy and sell some securities repeatedly in the same trading day.

● intra-day trading includes a variety of financial products, such as stocks, futures, options and foreign exchange.

● in the volatile market, intra-day trading can not only make considerable profits, but also cause serious losses.

Understand intra-day trading

Intra-day trading means that investors buy and sell the same securities multiple times in the same day. The idea behind these transactions is to use the price fluctuations that securities may experience on the day to earn spreads, which can avoid the risk of holding shares for a long time.

Intra-day trading can rely mainly on technical analysis, which can be carried out by both individual traders and financial companies, but intraday trading is not suitable for everyone. Because intraday trading is risky and profit margins tend to be low, investors may suffer large losses if the market changes rapidly.

In addition, intraday investors also need to spend a lot of time marking and technical analysis.

How intra-day trading works

Intraday traders mostly use quantification and technical analysis to trade.

From the point of view of position time, intra-day trading can be divided into many forms, each of which has its own characteristics suitable for specific types of traders. It ranges from short-term trading, holding assets for only a few seconds or minutes, to long-term band and position trading, that is, holding assets throughout the trading day but not overnight.

Most intraday trading systems are adaptable and allow positions ranging from a few minutes to hours. Futures, options, currency and stock markets are the main financial products traded within the day.

Advantages and disadvantages


1. Intra-day trading can avoid overnight and long-term risks.

two。 Intra-day trading can make a profit in a relatively fast time.

3. Intra-day trading can improve the trading experience and level of traders because of the large trading volume.

Inferior position

1. Intra-day trading requires high technical analysis ability.

two。 Intra-day trading is a very stressful, costly and time-consuming way of trading.

3. Intraday trading may miss the long-term investment value of assets.

Intraday trading VS band trading

Both are short-term trading strategies, and the simple difference between them is holding time.

Intraday trading is limited to one day, while band traders may hold it overnight to a few weeks. Therefore, band trading faces the overnight risk that does not affect intra-day trading.

In addition, these strategies have different transaction costs. Intra-day trading requires more frequent transactions, which leads to higher transaction costs.

Disclaimer: The above content does not constitute any act of financial product marketing, investment offer, or financial advice. Before making any investment decision, investors should consider the risk factors related to investment products based on their own circumstances and consult professional investment advisors where necessary.