Become Govt. Certified GST Practitioner in just 58 hrs. Register Now!

Day trading of shares

Vijay Mohan (638 Points)

13 January 2022

intra day trading of shares will come under speculation or business

Reply
Follow
Share

4 Replies

CA Aakarsh Jain (CA) (10431 Points)
Replied 13 January 2022

It will come in speculative business

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

CA Puja Sharma (Chartered Accountant) (5010 Points)
Replied 13 January 2022

Speculative business

Nidhi (Chief Accountant) (3150 Points)
Replied 14 January 2022

Speculation

yojejo8029 (iiiii) (32 Points)
Replied 30 April 2022

The purchasing and selling of shares and other investment products on the same day is known as day trading. In other words, day trading means that all positions are paid off before the market closes and that there is no change in share ownership as a result of the trades. Until recently, many thought that day trading was exclusive for financial institutions and experienced traders. However, due to the rise of computerized trading and leverage trading, this has altered.
In day trading, you close your positions on the same day. As a result, your sell order cancels out your buy order. There is no change of ownership of shares in this manner. A typical deal takes many days, if not weeks, to settle. As a result, you receive delivery of the shares you purchased, while the shares you sold are removed from your demat account.
It is critical that you select equities with sufficient liquidity to execute such deals. This is why many people prefer high-liquidity equities, such as large-cap stocks. This reduces the possibility of your trades having an influence on the share price of the chosen stock. For intraday traders, market timing is critical. Choosing the incorrect timing to enter a trade might be the difference between profit and loss.