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Intraday Trading Time

Intraday Trading Time

‘Time invested properly is the best time,’ and you can easily apply this to intraday trading as well. It is, therefore, crucial to know the intraday trading time because it makes it easier for the trader to plan, research, execute, and gain returns.

No matter how quick the decisions have to be in intraday trading, keeping the time in mind is also essential.

Not only this, but intraday trading time also gives you a look at the bigger picture. It is not just about during what hours you should trade but also helps in strategically planning the same.

So you all know what is intraday trading and to execute it in the best way let us now have a look at the different intraday times.

Intraday Trading Time in India

Intraday trading is an exciting genre in the stock market, and we cannot deny that. It is the buying and selling of the stocks on the same day.

But when one begins the journey, too many questions hit his mind. Some of them are:

Since the buying and selling happen on the same day, the intraday trading starts at 9:15 AM, and can be executed till 3:30 PM.

The meaning of this is that you need to start your trading from 9:15 in the morning. In addition, you also have to make sure to square off all your positions before the market closes.

In case you fail to square off your positions, it will be automatically squared off. You can also carry these positions and convert them to delivery trades.

So, if you want to make profits out of the intraday trades, make sure that you do it within share market open time.

Now that we know about the trading window for intraday traders let us look at the suitable time frame.

Intraday Commodity Trading Time

Now the above share market timings details are for the equity segment. Does the commodity trading time is same? Therefore, the intraday trading time for commodity trading also changes. If you are thinking of trading commodities like crude oil, gold, silver, etc., then the timings for the same are as follows.

In case, you forget to close your position at the square off time i.e. 25 minutes before the market ends, then the commodity trading position gets auto-squared off and the penalty or additional charges are charged on it.

For example- The commodity market for the non-Agri commodities closes at 11:55 PM, so the positions will be squared off around 11:30 PM.

Best Time Frame for Intraday Trading

“Time and tide wait for no one,” we have heard this various times in our life. But what is the relevance of the same in intraday trading?

Intraday trading is basically riding the trend of the market and playing with volatility. Where the market fluctuates every second, the best time won’t wait. Therefore, it is essential that you keep a close eye on the time that has a higher potential of making profits.

The best time for the intraday traders is during the early session of the market. This time is usually from 9:30 am- 10:30 am.

Wondering why?

Let us look at some of the reasons why the traders prefer trading during these hours.

  • Volatility plays a significant role in intraday trading, and during these hours, the volatility in the market is usually high.
  • The liquidity of the market is also higher at this time, giving the intraday traders an easy entry and exit in the stocks.
  • The prices in the latter part of the market half don’t fluctuate a lot. This does not let the traders make significant profits.

The stocks also move the most during the early market hours because of several previous night’s news, announcements, reports, etc.

But, this can be a risky zone for beginner traders. You ask why?

The beginner traders usually face difficulties in guessing whether or not the news will have a positive impact. It is, therefore, better for the beginners to wait for the first 15 minutes and observe.

Experienced traders usually make the best out of the first 15 minutes. Based on this, the beginners can also create their decisions.

When a trader is involved in intraday trading, technical analysis plays an important role. So let us now have a look at the best time frame for those as well.

Which Time Frame Chart is Best for Intraday Trading?

Intraday trading and technical analysis go hand in hand. Technical analysis helps a trader choose an entry and exit point and increases the chances of profitability.

It is best to use the daily charts or, as said, the one-day charts when you are doing day trading. It helps you to have a look at the current market trends. Since intraday trading is solely based on earning the most from the volatile movements, one one-day chart can give you a clear picture.

Daily charts give you a picture of everyday trading activities. Not just the daily price movements, but it also shows the daily trends over a specified period.

You can also analyze the daily chart over different time frames for a better understanding. So let us now talk about the best candlestick time frame that will ease your intraday trading.

Best Candlestick Time Frame for Day Trading

Most intraday users use and rely on the 5-minute candlestick chart and the 15-minutes candlestick chart. These are the best because intraday trading is all about minor price fluctuations, which can help you identify.

The charts track the trading activity of the last 5-minutes and 15-minutes, respectively. You can also take the assistance of hourly charts.

If you strategically pick the exemplary chart, you can have a better chance of maximizing your profit.

Intraday Trading Square Off Time

It must be clear by now that you can hold the intraday positions only for a day. It is, therefore, vital that you square off all your open intraday positions before the market closes.

If a trader fails to do so, the intraday open positions are auto-squared off. But, of course, you can also choose to carry forward the position, and it has to be done before the market closes.

The intraday square-off time usually ranges from 3:15 pm- 3:30 pm. All the open intraday positions in Choice are squared-off at 3:15 pm.

Therefore, make sure that you exit your current positions before that if you have made subsequent profits.

Intraday Profit Settlement

As per SEBI’s new guidelines, all intraday trades are generally settled at the end of the next day’s market hours.

Suppose you traded 1000 shares of XYZ company on Monday and earned a good profit on that. Your profit or your intraday trading amount will get settled on Tuesday after the market hours.

If your trading day falls just before a share market holiday or on Fridays, then the intraday trading amount will be settled on the next opening day. In the case of Fridays, it will happen on Monday. And in the case of a holiday, on the day when the market opens.

You will have to wait T+1 days for your intraday trading profits.

Conclusion

Intraday trading time is essential because you want to make the best out of the available time. The early market hours are usually the best for intraday traders owing to high volatility and liquidity.

Although there is no rule that you have to stay constrained in the time that we talked about, it is still crucial that you strategically keep an eye on the best time.

If you are also looking to make good profits in intraday trading, open free trading account today!

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