In the share market, traders have the option to choose the type of trading from the two main available options -- intraday and positional.
In the share market, traders have the option to choose the type of trading from the two main available options -- intraday and positional. Traders can either choose one of the options or both of them.
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As the name suggests, intraday trading refers to entering and exiting positions on the same day. It is aimed at capturing very small moves, typically 1 percent or less. On the other hand, positional trading involves entering a position on one day and exiting it a few days or weeks later. Sometimes, a positional trader could also exit his or his position after a few months.
The magnitude in position trading, Abhishek Chinchalkar, head of education, FYERS explains, can vary from trader to trader, but a positional trader typically aims at capturing 5-30 percent type moves. However, the percentages can vary depending on the volatility of the security in question.