For the traders there are various segments available in the share market. One can go for cash or derivatives as per his choice. Both of these segments also have some more options which are known as intraday, delivery, future and options. Hence a trader who wants to make money from trading in this market needs to check which segment will be better for him and how can he carry out trade to make optimum profit. For those who want to have quick profit the intraday option is the most preferable one. It is the segment with lowest brokerage online trading if one goes for trading on online platform.
The intraday trading:
In the intraday trading one can have better opportunities as the trading session is for limited hours and one does not have to pay higher amount as brokerage also. The traders who love to go for the trading in limited hours, this can be the best option. For the traders the intraday trading is an option with limited risk. If the share prices goes up and one has already bought them at low rates, he can immediately sell them and get the profit booked. The best feature here is one can have better limits and also low brokerage hence the profit can be more in this segment compared to others.
Is it a good option?
Well, intraday trading can be the best option for one who has knowledge of the trend and sentiments. In this option if one trade goes wrong also it may not be much harmful to the profile of the client also. One also needs to have little margin money if he wants to deal in this segment as with the rotation of the trades one can have more trading within the same credit limit.
There is always two sides of every aspect and hence if this option is not used prudently it can be dangerous for the client as well as the broker. It is seen that in many cases the credit offered to the client has been completely utilized by him and if he has no knowledge of the market the trades may go wrong. Eventually he leads to such an extent of debt where not only his margin is washed away but he has to pay to the credit money also. In such a case if one does not have enough money he has to face huge problems with the payment to the broker.
This can lead the broker as well as the client in great troubles. Hence although there is no specific rules for granting credit to the clients the brokers act carefully where they can offer the amount of payment and limit for the credit which can help one to have trading benefits and at the same time there can be no risk to the client as far as trading credit is concerned. Hence the users who want to have better trading can also go for the credit and earn more profit.