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Intraday Share Trading

Intraday Share Trading Intraday trading is a share trading methodology that is centred on buying a share and selling it in the same day (akin to day trading). There is much more too it and it can be quite complicated ground. If you are new to the share trading scene you may want to consider starting out with an easier method of trading such as the delivery based method of stock trading. Essentially, an intraday trader will do their best to leverage what they can borrow on their securities by loaning the shares then selling them on for a profit. You are normally required to have an account with the brokerage or trade specialist you are registered through and a certain amount of capital in the account before being allowed to use this method of trading.

As a rule, you can’t keep the full amount you are entitled to loan any longer than the full day. You can keep approximately fifty percent of your initial investment tied up by the loan. This gives you a little room to strategise in the event the shares that you have borrowed on have not reached the potential you first expected them to reach during the day (in fact it is dangerous territory because you may have lost money on the initial loan if the shares drop any lower in price). You can sell fifty percent of those tied up by the loan and hope that the shares gain a few points overnight. It can be pretty risky. However, with the right risk management techniques it can pay off quickly and relatively risk free.

Whilst this form of trading is not really recommended to people who are new to the industry – it is worth learning all you can about before you attempt using the stock market. It is nice to know your options when you start becoming proficient at other methods of stock trading.

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