Everything you always wanted to know about Zerodha Intraday Trading
What is intraday trading?
Intraday trading, also known day trading, refers to the buying and selling of stocks and other financial elements within the same day. In other terms, intraday trading means all positions are settled before the market closes and there is no variation in ownership of shares as an outcome of the trades. In this article , we will cover Zerodha intraday tips & tricks, benefits, how to do intraday trading in Zerodha, intraday trading charges with Zerodha and more.
Until recently, people understood day trading to be the field of financial firms and professional traders. But this has changed nowadays, thanks to the rising prominence of electronic trading and margin trading.
Today, it’s very much simple to start intraday trading by following some Intraday tips & tricks. If you want to begin, read on to understand the basics of intraday trading:
Difference between regular trading and intraday trading
There’s only one difference between a regular trade and intraday trade. It mainly lies in obtaining the delivery of the stocks.
In intraday trading, you settle your positions the same day. Thus, your sell order offsets your buy order. Because of this, there is no transfer of ownership of shares. On the other hand, a regular trade gets squared off over a span of days if not longer. This means, you get delivery of the shares you subscribed while the shares you sold move out of your demat account.
In today’s competitive stock trading landscape, there are lots of stock brokers available that offer intraday trading and among them, Zerodha is a leading one. Let’s get to know everything about Zerodha intraday trading below.
How to do Intraday Trading in Zerodha?
In the present context, doing intraday trading in Zerodha is pretty simple due to its cutting-edge trading platforms and user-centric offerings. Zerodha offers a simpler yet effective way to perform intraday trading. Have a look at the following step-by-step guide to do intraday trading in Zerodha.
- To begin with, you need to open a Demat account with Zerodha. Opening an account is very easy, just fill the pop up form on your screen and ask to open your demat & trading account.
- You can fill and submit the form, Later you have to attach the soft copies of all the required documents. Once you upload the documents and submit the application, a broker representative will follow up for further processing. You will be provided a login ID and password that you can use to login through the trading platforms of Zerodha.
- The next thing to do is to download the trading terminal and log in using the given ID and password. You can use the same credentials for login on both desktops as well as a mobile trading platform. However, according to experts, for intraday trading, a trading terminal is the best option.
- Once logged in, you can explore various tools available in the system and prepare the market watch list. After this, you can choose to get into intraday trading.
- When it comes to buying or selling the stocks, you just need to click on the specific share and choose the Intraday Trading option out of two choices.
You can also do intraday trading in Zerodha in offline mode
In the offline trading mode, a trader needs to make a call to the Zerodha call & trade section. To place a trade, he or she needs to know the “telephone code”. Earlier, it was called Zerodha ZPin.
The purpose behind the use of this pin is to authenticate and verify the identity of the trader before the order placement. If a person calls from the registered phone number, she/he is supposed to enter the telephone code in the IVR for accessing the support representative.
On the other hand, it he or she calls from another phone, one is expected to enter the registered phone number followed by the telephone code without any space or any character in between. This telephone code can be viewed by logging into the Zerodha Backoffice and checking the Profile screen.
Example: If your registered phone no is 9988776655 and telephone code is 1234, then your pin is 99887766551234 that you have to enter in IVR.
It is important to note that there is always an option to use some of the best Zerodha Intraday tips while placing orders. You can find the tips below.
Zerodha Intraday Trading Charges
Here are the various Zerodha intraday charges including brokerage levied for Intraday Trading in Zerodha:
- Zerodha Brokerage becomes applicable every time you place an order – 0.03% or Rs. 20 per order. With Zerodha, higher trade value does not mean higher brokerage since they have limited it at an optimum level of ₹20.
- STT or Securities Transaction Tax is charged by the stock exchange such as NSE or BSE and is usually placed on the sell side of the trade.
- Turnover Charges are levied on both ends of the trade by a particular exchange.
- SEBI charges, as the name implies, are charged by the regulator itself i.e. SEBI
- GST or Goods and Service Tax is basically a central government levied-tax.
- Stamp duty charges are levied by the state government.
Apart from the above-mentioned brokerage & margin charges, stamp duty and DP charges are also levied for each transaction. It is to keep in mind that stamp duties are different for each state.
Zerodha Intraday Trading Time
During the market opening hours, one can perform Zerodha intraday trading any time. Here you can find some Zerodha intraday trading tips that can increase your profit. If an open intraday MIS / BO / CO position has not been squared off before the closing of the market, it gets automatically settled roughly 3:20 pm. If in case, the intraday trading position has not been settled till the closing of the market, the position gets transformed into CNC position. This tends to move forward to the next trading day and gets settled by Zerodha automatically if the asked amount of cash is not available in the account.
Zerodha Intraday Trading Margin
Trading in futures is utilized which refers that only a small amount of money known as “margin” should be there in the account to make an intraday future.
The margin calculator of Zerodha provides comprehensive details of margin necessities during futures trading. One is supposed to enter all trade-related information in order to compute comprehensive margin requirements for any specific trade. The margin calculator has a detailed and thorough list of all stocks along with the MIS and CO / BO margin/leverage.
Zerodha Intraday Trading Tips
Frankly, there is no set pattern you can refer to in order to generate profits out of Zerodha intraday trading. However, you can refer to some proven Zerodha intraday trading tips that might be of some help in executing the trade.
- Carry out a detailed technical inspection of stocks for the sectors or stocks you are evaluating. There are several technical indicators, charts, heat maps, screeners and other associated tools that can help you to make sound trading decisions.
- In case of online order placement mode, then you just need to choose a particular scrip. You may choose to place the order type as MIS for example.
- Preferably, you should place a stop-loss price in order to limit your losses if the trade goes in the opposite direction against your opportunities.
- It is totally logical to use a trailing stop-loss order in order to make higher profits.
- Use margin to the level that is based on your risk craving. This is because using margin is a double-edged sword.
Conclusion – Intraday Trading in Zerodha
With the presence of brokerage and margin calculators, Zerodha intraday trading has become a lot simple and effective. These calculators enable the precise monetary value related to every type of intraday trade.
There is no need to make an intraday trade just to check margin requirements. He or she can be assured that every single penny being levied or blocked during a trade. The key to successful Zerodha intraday trade is complete knowledge, should follow Intraday trading tips and smart trading.
FAQs about Zerodha Intraday Trading
What does Zerodha intraday refer to?
Here intraday simply means that all the stock-related transactions are squared off every day at the closing of the market without incurring any change in the ownership.
Can I get Intraday Tips by Zerodha?
This is something Zerodha holds an edge in. Instead of sending bulk-level tips and notifications, one gets much-filtered information in the form of insightful tips for both traders and investors.
What are Intraday Charges in Zerodha?
The charge incurred for the intraday brokerage is a meager 0.03% or Rs.20 whichever is lower against every trade. This is truly a boon for traders who prefer Zerodha for intraday trading. Then comes the STT, SEBI turnover charges, the GST charged by the central government, and Stamp duty based on the state’s regulation.
Is Zerodha intraday trading safe?
Zerodha is considered among the best stockbrokers in the country and has a huge client base. Over the years, the stockbroker has been providing value-based broking services to a large number of traders and investors. It also counts on highly advanced tools and technology to make intraday trading seamless and safer than its counterparts.
Is it possible to hold intraday shares in Zerodha?
Yes, the stockbroker provides margin on stocks and ETFs that can you can hold. This is known as pledging. It can be employed for trading Equity Intraday, Futures long & short & Options writing.