In the world of stock trading, there are two primary methods investors use to buy and sell securities: intraday trading and delivery trading. Each method comes with its own set of strategies, risks, and potential rewards. In this article, we'll delve into the basic differences between intraday and delivery trading and discuss which one may offer more profit potential. Intraday Trading: Definition: Intraday trading, also known as day trading, involves buying and selling securities within the same trading day. Traders aim to capitalize on small price movements and take advantage of short-term market fluctuations. Key Characteristics: 1. Short Holding Period: Positions are typically held for minutes to hours, with trades executed multiple times throughout the day. 2. Leverage: Traders often use margin accounts to amplify their buying power, which can lead to increased profits but also higher risks. 3. High Frequency: Intraday traders rely on technical analysis, charts, and market in...
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