How to start intraday trading

Key takeaways

Intraday trading means buying and selling a stock or derivative on the same trading day, with all open positions squared off before market close.
Intraday trading in equity stocks on NSE and BSE is conducted from 9:15 AM to 3:30 PM IST. As of August 3, 2026, the continuous trading of F&O-eligible stocks will be stopped at 3:15 PM.
Auto square-off timings for MIS have now been changed based on the type of stock: CAS-eligible (F&O) stocks get auto squared off around 3:10 PM, while non-CAS stocks/Index & stock derivatives get auto squared off around 3:25 PM. The exact time depends on the broker.
SEBI's peak margin rules mandate brokers to collect upfront margin for intraday positions.
Profits from intraday equity trading are classified as speculative business income and taxed at the applicable income tax slab rate.
Intraday trading requires a structured approach that involves stop-losses, defined position sizing, a daily stop-loss limit, and maintaining a margin buffer.

What is intraday trading?

Intraday trading, also called day trading, means opening and closing a position on the same trading day. A trader may buy a stock in the morning and sell it in the afternoon, or sell first and buy back later (short selling). In intraday trading, the trade is settled without delivery of shares, and the goal is to profit from small price movements.

Most Indian brokers offer a product type called MIS (Margin Intraday Square-off) for this. If you do not close an MIS position yourself, the broker squares it off automatically before the market closes. Here is how intraday differs from delivery trading:

Feature	Intraday trading	Delivery trading
Holding period	Same day	Overnight or longer
Shares credited to Demat	No	Yes
Product type	MIS	CNC
Auto square-off	Yes, if position is not manually closed	No
STT on equity	0.025%, sell transactions only	0.1%, on both buy and sell
Tax treatment	Speculative business income	Capital gains (STCG or LTCG)

How does intraday trading work in India?

Intraday trades take place on NSE and BSE, the same exchanges where investors buy shares for the long term. A trading day has three parts:

Pre-open session (9:00 AM to 9:15 AM): Orders are collected and matched to discover the opening price.
Regular session (9:15 AM to 3:30 PM): Stocks trade continuously until 3:30 PM, except those covered by the CAS.
Closing auction session (new): From August 3, 2026, SEBI introduced CAS under which continuous trading for F&O-eligible cash stocks stops at 3:15 PM (instead of the traditional 3:30 PM), while non-CAS / non-F&O stocks continue trading until 3:30 PM. Furthermore, the derivatives (Futures & Options) trading session officially closes at 3:40 PM.

This change is an important one for intraday traders, as stop-loss orders are not allowed during the auction. Furthermore, because of CAS, many brokers have changed their auto square-off timing. Currently, for CAS stocks, it is often around 3:10 PM, while for non-CAS stocks/Index & stock derivatives, it is around 3:25 PM, depending on the broker.

Here are two additional rules to be aware of. First, due to the upfront margin structure mandated by SEBI, brokers are required to collect the margin from traders in advance, limiting the leverage available to them. Second, not all stocks are eligible for intraday trading.

How to begin intraday trading?

Here is how to start intraday trading in India:

Step 1: Open a trading and demat account

Select a SEBI-registered broker that offers intraday trading in the segments you want to trade. Complete the KYC process online using your PAN, Aadhaar, bank statement, and a cancelled cheque. Using Dhan, you can open an account in just 10 minutes.

Step 2: Decide which segment to trade

The margin requirements, contract specifications and risk profiles vary for each segment. Equity cash intraday is a popular choice among new traders, as F&O trading is more complex and is more suitable for traders who have an understanding of derivative instruments.

Step 3: Fund your account

Add funds to your account via UPI, Net Banking, NEFT, RTGS or IMPS.

Step 4: Choose liquid instruments

Not all stocks are suitable for intraday trading. Select liquid stocks that have high average daily volumes and tight bid-ask spreads. High liquidity means that the entry and exit orders are executed close to the desired price, minimising slippage.

Step 5: Select MIS as the product type

For an intraday order in the equity cash segment, choose MIS as the Product Type. This tells the broker you'll close the position during the day.

Step 6: Place the trade and maintain a margin buffer

Before you place any trade, set your entry price, profit target and maximum loss. After this, place the order using the MIS product type. Monitor the position after entry and avoid changing your stop-loss or target based on emotions. Additionally, keep a margin buffer above the broker’s minimum requirement.

Popular intraday trading strategies

Disciplined day traders do not trade based on intuition or unconfirmed tips, but rather on rule-based technical setups that help them identify high-probability entries and exits. Here are five popular intraday trading strategies in the Indian stock market:

Momentum trading: This involves trading stocks that are trending in a particular direction because of new catalysts like quarterly earnings, order wins or sectoral breakouts. Traders enter early in the trend alongside surging volume and use a trailing stop-loss to lock in gains as momentum slows down.
Opening range breakout (ORB): In this strategy, the opening range of the first 15 to 30 minutes after the 9:15 AM opening bell usually sets the initial volatility range for the day. Traders identify the high and low of this opening window. A strong volume decisive candle above the opening range high is often a buy signal, and a breakdown below the opening range low suggests a short sell signal, with the stop-loss set at the other end of the range.
Moving average crossover: When you combine a short-term Exponential Moving Average (EMA) (e.g., 9 EMA) with a medium-term EMA (e.g., 21 EMA) on a 5-minute or 15-minute chart, it helps filter out market noise. A bullish market momentum is indicated when the faster EMA crosses above the slower EMA, while a bearish market momentum is indicated when the faster EMA crosses below the slower EMA.
Reversal trading: Reversal traders, instead of following the ongoing trend, wait for price to test major support or resistance levels alongside momentum-exhaustion signals such as Relative Strength Index (RSI) above 70 (overbought) or below 30 (oversold). Furthermore, traders also wait for a confirmation candle and use a tight stop-loss, since a trend may continue longer than expected.
Scalping: It refers to executing several trades within a few minutes to capture small price movements. In scalping, scalpers aim to accumulate small gains repeatedly throughout the session. Scalping is best suited for highly liquid stocks or indices, with a narrow bid-ask spread and fast order execution.

What does intraday trading cost?

Every intraday trade, whether it ends in profit or loss, attracts the following charges:

Charge	Rate
Brokerage	₹20 or 0.03% of trade value per order (On Dhan)
STT	0.025% on sell transactions only
Transaction charges	BSE: 0.00375% NSE: 0.0030699%
SEBI Turnover fees	0.0001% of the turnover
GST	18% on brokerage + transaction charges + SEBI Turnover + IPFT/Other Tax
Stamp duty	0.003% on buy orders
IPFT Contribution	0.0000001% of the turnover

Calculate intraday trading cost using our Brokerage Calculator.

How is intraday trading taxed in India?

Under Indian income tax law, a share transaction settled without actual delivery is a speculative transaction. So profits from intraday equity trading are speculative business income, taxed at the trader's slab rate rather than as capital gains. Speculative losses can be set off only against speculative profits and carried forward for up to four tax years (Section 113 of the Income-tax Act, 2025, which replaced Section 73 of the 1961 Act).

Such income is generally reported in ITR-3, while income from futures and options traded on a recognised stock exchange is treated as non-speculative business income.

Risk management in intraday trading

Overtrading and impulsive decisions often significantly impact traders' returns, making risk management as important as strategy in intraday trading. Here are some risk management practices that traders can use:

Use a stop-loss on every trade: Traders should define their maximum acceptable loss before entering the trade and place a stop-loss. Without one, a single adverse move around an earnings announcement, a global macro surprise, or an unexpected news event can result in a loss far greater than intended.
Position sizing: One of the most important risk management practices is to risk only 1-2% of your total trading capital on a single trade. This way, when a losing streak occurs, it does not eliminate the entire capital all at once.
Set a daily loss limit: Pre-determine how much you can lose in one day. If that level is reached, stop trading on that day. During losses, traders often seek revenge trading, which involves trying to make back losses in the same session, usually resulting in further losses.
Use a margin buffer. If a position moves adversely and the account balance drops below the minimum margin, the broker may auto-square off the position at an unfavourable price. To avoid forced exits due to intraday volatility, maintain some additional funds above the minimum required margin.

The bottom line

Intraday trading offers Indian traders a quick way to make gains and participate in the stock market, but the potential for losses is as large as the potential for gains, owing to high leverage and the rapid pace of trading.

Beginners can start intraday trading by opening an account with a SEBI-registered broker, choosing liquid stocks, selecting MIS as the product type, and defining the entry, target and stop-loss before every trade.

However, to be successful in intraday trading, risk management matters as much as strategy, and costs and tax implications determine your final returns.

FAQs

1. How much money do I need to start intraday trading in India?

There is no fixed minimum for equity intraday trading. The amount depends on the stock price, your quantity and the margin your broker requires. Check the required margin before every order and begin with an amount you can afford to lose.

2. What are the intraday trading timings in India?

The pre-open session runs from 9:00 AM to 9:15 AM, and regular trading runs from 9:15 AM to 3:30 PM. Stocks with F&O contracts stop regular trading at 3:15 PM, followed by the closing auction session until 3:35 PM. Equity derivatives trade until 3:40 PM. Brokers square off open intraday positions earlier, and the timings vary across different brokers.

3. What happens if I do not square off my intraday position?

Any open MIS position not manually closed before auto-square timings will be automatically squared off by the broker before the market session ends. From August 3, 2026, the auto square-off time for CAS-eligible (F&O) stocks across most brokers is around 3:10 PM; for non-CAS stocks/Index & stock derivatives, it is around 3:25 PM. Additionally, brokers often charge an auto square-off charge for squaring off these positions.

4. Is intraday trading income taxable in India?

Yes, gains earned from intraday equity trading are considered speculative business income and taxed at the applicable income tax slab of the trader. But F&O trading earnings are considered non-speculative business income.

5. Can I convert an intraday trade into a delivery trade?

Yes, most trading platforms allow you to convert an open MIS (Intraday) position into a CNC (Delivery) position before the auto square-off timings, provided you have 100% of the required delivery funds available in your trading account (for buy positions).