--- title: 'What is Intraday Trading in the Stock Market?' source: 'https://youtube.com/watch?v=gYFEPm5twi4' video_id: 'gYFEPm5twi4' date: 2026-08-06 duration_sec: 588 --- # What is Intraday Trading in the Stock Market? > Source: [What is Intraday Trading in the Stock Market?](https://youtube.com/watch?v=gYFEPm5twi4) ## Summary This video by Labour Law Advisor explains the concept of intraday trading in the stock market, contrasting it with long-term investing. It details how intraday trading works, the use of leverage, potential profits and losses, and the importance of stop-loss orders. The video concludes with a cautionary verdict, advising viewers to focus on long-term investing rather than risky intraday trading. ### Key Points - **Definition of Intraday Trading** [00:52] — Intraday trading involves buying and selling shares on the same day within the stock market trading hours. It is not investing; it requires a trading account, while a Demat account holds shares. Positions are reflected as 'positions' not 'holdings'. - **Profit Potential and Leverage** [02:03] — Traders often consider 1-2% profit as significant. With leverage, a trader can control a larger position. Example: With Rs 1000, a broker provides Rs 9000 leverage to buy Rs 10,000 worth of shares. If the share price rises from Rs 100 to Rs 102, the trader earns Rs 200 (20% profit on own money) instead of just Rs 20. - **Risk of Losses** [03:59] — If the stock price falls, the trader must repay the broker's loan, potentially losing the entire invested capital. Example: If the stock drops, the trader loses the Rs 1000 investment, resulting in a 100% loss. Stop-loss orders can limit losses by automatically selling shares at a predetermined price. - **Broker Revenue and Leverage Source** [06:09] — Brokers earn revenue from intraday traders through brokerage fees on both buy and sell sides. Leverage is essentially a loan from the broker, funded by the two-day settlement period before the seller receives payment. The video mentions calculators in the description to determine leverage for specific stocks. - **Verdict and Advice** [07:24] — The video warns against intraday trading for those without deep market knowledge, citing many people have suffered huge losses. It advises focusing on long-term investing, such as monthly SIPs, to benefit from compounding and build wealth over time. ### Conclusion Intraday trading offers the potential for high returns through leverage but carries the risk of losing your entire investment. The video strongly advises viewers to prioritize long-term investing strategies like SIPs to build wealth safely. ## Transcript and they tell me, sir, why don't you try intraday trading in the stock market? And every day you will earn 4000 to 5000 easily. If I ask you to purchase, then you buy And you see every afternoon you will have 4000 to 5000 extra And do I earn 5000 rupees a day? My name is Mandeep and you are watching Labour Law Advisor then do subscribe Because there we put short notes of complex videos [intro music] so, today we are talking about Intraday Trading in the stock market and sell it on the same day, How does this work? How much money do people make in this? or not? first, let's know What is Intraday Trading? This is not investing at all That is, you bought any share in your stock market duration And for this, you need a trading account Yes, the job of a Demat account is to hold shares in your account, But using a trading account, you can do intraday trading So whenever you buy a share for intraday by using that account So that reflects in your position, not your holdings. Now, let's talk about scope. They consider even 1-2% a huge profit. by anyhow, we earn 1% 2% on this stock So maybe he will slap back that is how he can make a profit of 1%-2% in six hours in a quantity of 10 If that share of Rs 100 increases, and becomes of Rs 102 And you will get Rs 1020 earned 1020 rupees The problem is that if a trader has a fixed amount For example, let's say I have only 1000 rupees, that's not so lucrative for me The broker will tell you that you have 1000 rupees, You take 9000 from me and you buy shares worth 10,000 rupees through which, I am buying shares so, now you can buy 100 shares You have just bought shares worth 10,000 rupees And from before noon, that share is worth 102 rupees. Now out of this 9000 rupees were borrowed. So you deduct 9000 rupees 1,200 rupees out of which 1000 rupees that you had invested here your profit has become 20% Whereas if you pay attention, the share price went from 100 to 102 But you made a profit of 20 rupees on your money Because the broker gave you a leverage of 9000 rupees But if it is just reversed then it becomes very bad too. You invested 10,000 rupees, Now that stock decreases instead of increasing so, at the end of the day, a broker will tell that brother, I want my 9000 rupees back So you invest at the time of buying 10,000 rupees And you have to repay the loan of 9000 rupees to the broker. means you have zero, left in your hand And in the last, you have zero left in your hand But you can also earn a loss of 100% here Most traders use Stoploss You can place a Stoploss order And you don't want it to fall down more And your own money of 1000 rupees should become zero You put a Stoploss of 98 or 95 on a share of 100 rupees. This means that if the price of the stock starts going down instead of up, Your shares will be sold automatically. So as soon as the share price comes to 95 because you took 10 shares Out of that, you will refund the leverage of 9000 rupees. So you started with 1000 rupees Whereas in the old one if you play without stop-loss Still, you had to bear a 50% loss in it. And this is highly unlikely but not impossible. What happens sometimes, is that it does not go to the price of 98 and goes to 95 or 90 and suddenly the price gets drops. The majority source of revenue of the broker comes from intraday traders only. So even if you are getting leverage of 9000 rupees from the stockbroker Buy and sell both side brokerage will have to be paid and if you want to find out how much leverage you will get to buy which stock So I will give you the link to two calculators in the description if you have 1000 rupees to invest so you may get leverage on its 5,10 or 11 times Now let's talk about where this leverage comes from. Fundamentally, it is only a loan for the trader If a trader has just bought shares worth 10,000 rupees That seller doesn't get that money instantly So if a broker has two days to give money to the seller So before 2 days, first he will give the leverage of all the money to a trader And because it is necessary to sell shares by noon in Intraday Trading So before two days, that leveraged money will go back to the broker now, let's talk about the Verdict I am sure you must have heard Now I have forgotten that word last word And tell me that word too, which proverb am I telling? If that person will do that work then it is understandable Infect if you don't have much knowledge of the stock market So whenever someone calls you that you can earn 5000 or 6000 per day Because many people have suffered huge losses in this And you will ask him brother tell me how are you able to earn Then he will definitely tell you there are so many days from 365 days, where like you and I have a full-time job He is very busy from 9 AM till 3 PM But even then he can never say that he will earn profit every day And you should stay away from it if you don't understand this game You should focus on investing If you do a monthly SIP of 3000 rupees with a 15% rate of return this is the power of compounding it will only work when you invest for a long time So things get a little less complicated I want to see how strong a company is on today's date if it is, assuming that this company is going to go beyond this point Which is one of the strongest banks in the banking sector But I have been telling you that when you invest for a long time, And there you can confidently say that you will be able to create wealth. My name is Mandeep And I'll meet you. very soon in another new video