Learn the Fundamentals of Trading

Learn the Fundamentals of Intraday, Currency and Commodity Trading

Many traders seek short term goals while trading in the stock market as they want to make quick money in a short period. Such things usually work but sometimes, traders may suffer heavy losses. Buying and selling of shares within a single day is a short-term strategy to produce high returns. This method is known as Intraday trading.

How Intraday Trading is Different from Regular Trading

Although day trading and regular trading are similar, the main difference between them is delivery. Intraday trading gives you a facility to square off your position on the same day. In case you do not square off your positions at the end of the day, your holdings can automatically sell at the day’s closing price under certain brokerage plans.

Whereas regular trading or delivery trading allows you to buy stocks and hold them in your Demat account. There is no such concept of square off positions in delivery trading. The stocks will remain in your Demat account until you sell them off. The duration can be days, weeks, months and even years.

Who should participate in Intraday Trading?

Intraday trading gives you promising returns and hence they may sound attractive. However, there are certain risks associated with it. In intraday trading, you have to square off your position before the session ending time. This requires your full attention until the market closes. Also, you need to have a good experience in intraday trading, only then you can achieve positive returns.

Currency Trading

Currency trading has been gaining a lot of popularity in India. Also, it becomes one of the greatest emerging trading platforms in India. The reason behind this huge popularity is the inclination of investors towards trading in currencies. In currency trading, investors trade over a pair of currencies and earn profits from it. They actually keep monitoring price movements on currencies and generate a high income from it.

In India, currency trading is done on apex stock exchanges such as NSE (National Stock Exchange), BSE (Bombay Stock Exchange) and Multi Commodity Stock Exchange. The timings of currency trading are available from 9 am to 5 pm. To trade in currency, investors don’t need to have cash or equity.

Commodity Trading

Commodity trading refers to the trading of precious metals, oil & gas, energy, spices and so on. Several metals such as gold, silver are traded in several ways like physical holdings, ETFs, futures contracts and more. As there are many options available to trade, commodity trading allows investors to trade that suits their temperament.

How to Invest in Commodity Trading

Among all of the ways, a futures contract is the best way to invest in commodities. Futures contracts are an agreement to buy and sell shares of commodities at a fixed price at a later date. The best thing about futures contracts is the futures contracts are available for every commodity type.


It is extremely important to gain proper knowledge in stock trading as having adequate knowledge of fundamentals of trading may give you certain ideas about trading such which trading type is better for you? Intraday trading, currency trading or commodity trading.

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