How can one execute intraday trades on Zerodha?
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- Updated On:06-Jul-2022
- Replies:1
Short Answer
Intraday trading on Zerodha can be executed with ease by choosing the type of trades you want to engage in. These could be NIFTY, BANK NIFTY, or future options of companies. Once you choose the respective lot, then choose the type of orders and then buy the shares. Trade them when you see a profit or wait till a specific point till you recover your investment.
Detailed Answer
The stock market is where an investor can make huge sums of money in a short period, all thanks to intraday trading. While this type of trading is associated with high risk and reward, it’s quite beneficial for those who know the market well and better understand where it would fall or rise. However, if you’re a beginner, then there would be some avenues that you might want to have a look at and understand how intraday trading is executed.
Speaking about intraday trading, where Zerodha happens to be the most prominent stockbroker, the entire transaction is executed with ease and fluidity. Therefore, if you want to learn how its executed, then we have the entire description provided below.
Intraday trades on Zerodha
To execute an intraday order, you would first choose the type of intraday trading that you might want to execute. Its where you would have to select whether you want to enter an F&O trade or a day trade. With intraday, you can’t simply trade with a single share. Instead, there are lots of 25, 75, 125, and more. You can increase it based on your preference and investment criteria. While you can take up a lesser number of shares, there’s not much you can make out of it.
Moving ahead, to execute the trades, then you would have to place the type of order required in intraday trading. For the same, all the different types of orders are provided as follows.
- **CNC - ** these are orders that you can carry forward to the next day and aren’t especially meant for intraday trading, and you can sell them when you see profits in your investment.
- MIS - these are Marginal intraday square off where the risk to reward ratio is higher. Based on the volatility of the market, investors can make 3 to 14 times the invested amount. However, they lose everything based on their entry points. The squaring off time is at 3:20 PM.
- Limit order – these are orders which are executed at a specific price point for selling or buying.
- Market order – the order executes the selling and buying of shares at a price in the market.
- SLM orders – it’s the process in which the stop loss is hit but at the share market price.
- SL order – these are orders where the stop loss is hit at a limit price, meaning that most investors are ready to lose and not afford any more losses.
- Bracket order – bracket orders are quite specific when it comes to the selling or buying of shares. They would be executed at that given price point and even sold if it hits any target point. Mostly, these orders are squared off at 3:20 PM.
- Cover order - This is quite similar to MIS; however, leverage is higher as there is a stop-less trigger set with specifics in buying and selling shares.
With that being said, you can choose any lot of shares from any company, and based on the market; you can enter the trade and book profits or losses. The average brokerage charged on these trades are 0.01% or 15 rupees per trade, while there are other add-on taxes and charges based on the state and number of the order executed of variable quantities.
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Realized P&L statement is the total amount of profit or loss you have made with each trade in any segment is reported here. It also includes the brokerage charge that you might have to pay.
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