Wednesday, 24 December 2008

Advantages of Day Trading

In Day trading you get margin on your balance amount means you get more leverages (amount) on your available balance amount to
do day trading this concept is called margin trading. Margin trading is only possible in day trading and not in delivery trading. How much
extra amount (margin) you are going to get that totally depends on your broker, or your online trading system brokers.
Some broker provides 3, 4, 5, and 6 times extra margin.
If you do margin trading then you have to square off your open trades on the same day (means if you bought shares then you have to
sell and if you sold shares then you have to buy)before market time (that is 3:30 PM) finishes.
¨ Second important advantage is that you have to pay is less brokerage (commissions) on day trading (Intraday) as compared to delivery
trading. This brokerage again depends from broker to broker (or on your online trading system).
¨ In day trading you can sell and then buy this is called short sell which you cant do in delivery trading. You can sell shares when
prices are falling and then buy when price falls further.

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