General

How is Intraday trading different from trading in Cash Segment/ Delivery?

Transactions in Cash Segment whether buy (or sell) are settled by “delivery” that is deducting the cash from the account and delivering the shares in the demat account whereas in Intraday trading, executed trades are squared off in the same settlement cycle (however there is an option to convert them into delivery in Intraday (Margin)).

For example, when you place an order to buy 100 shares of Reliance in the cash segment, your intention is to pay for and receive the shares in your demat account. However, if the same order were to be placed in the margin segment, your intention would be to sell those shares subsequently in the same settlement at a higher price and thereby make a profit on the same. However, if the price falls subsequently, there may be a loss.

Normally to buy shares, you have to pay 100% of the share value, while to sell shares, you need to have shares in your demat account. But in Intraday, you pay only a part of the share value as margin.