Intraday Trading India: Complete Beginner’s Guide 2026
Intraday trading means buying and selling a financial instrument within the same trading session, every position must be closed before 3:30 PM IST. This guide covers everything a beginner needs before placing their first intraday trade on Lemonn.
What Is Intraday Trading?
When you place an intraday (MIS: Margin Intraday Square-off) order on Lemonn, you commit to closing that position the same day. If you forget, your broker auto-squares off the position at around 3:20 PM at market price, which can be unfavorable. Always close manually.
Intraday vs Delivery Trading
| Feature | Intraday | Delivery |
|---|---|---|
| Holding Period | Same day; close by 3:30 PM | Days, months, or years |
| Leverage Available | 5x to 10x typically | No leverage on delivery |
| Risk Level | High; amplified by leverage | Medium |
| Brokerage on Lemonn | Rs.0 | Rs.0 |
| Tax Treatment | Speculative business income (slab rate) | STCG 20% or LTCG 12.5% |
| Capital Recommended | Rs.25,000 minimum | Any amount |
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The Hard Truth About Intraday Trading
A SEBI study found approximately 70% of intraday traders lose money over a one-year period. Primary reasons: over-trading, ignoring stop-losses, lack of a defined strategy, and emotional decision-making. Intraday trading rewards discipline and punishes impulsiveness.
What You Need to Start
- Demat and trading account on Lemonn: zero account opening fee, zero AMC
- Minimum capital Rs.10,000; recommended Rs.25,000 for proper risk management
- Reliable internet connection with mobile data backup
- Charting platform: Lemonn’s built-in charts or TradingView
- Basic understanding of technical analysis and candlestick patterns
How Intraday Leverage Works
Lemonn provides intraday margin, typically 5x to 10x your capital. If you have Rs.10,000, you can take positions worth Rs.50,000 to Rs.1,00,000. This magnifies both gains and losses equally. A 2% adverse move on a 10x leveraged position means a 20% loss on your actual capital.
Best Intraday Trading Times
| Time Window | Market Activity | Recommended Action |
|---|---|---|
| 9:15 – 9:30 AM | Opening volatility, gap openings, news reactions | Watch only; do NOT trade |
| 9:30 – 10:30 AM | Trend establishes, volumes are highest | Best entry window |
| 10:30 AM – 12:00 PM | Good momentum continues with cleaner setups | Trade with established trend |
| 12:00 – 2:00 PM | Lunch consolidation, low volume, choppy movement | Avoid new positions |
| 2:00 – 3:15 PM | Second opportunity window, institutional squaring begins | Selective entries only |
| 3:15 – 3:30 PM | Auto square-off zone, dangerous last-minute volatility | Close ALL positions |
Step-by-Step: Your First Intraday Trade on Lemonn
- Log in to Lemonn and go to the Stocks section
- Search for a liquid large-cap stock (HDFC Bank, Reliance, Infosys)
- Tap Buy and select order type MIS (Margin Intraday Square-off)
- Set quantity and limit price: use limit order for better price control
- Place a stop-loss order immediately after your buy executes
- Monitor the trade and close manually before 3:15 PM
FAQs
Can I do intraday with Rs.1,000?
Technically yes, but not recommended. With Rs.1,000 and 5x leverage you can trade Rs.5,000 – too small to manage risk properly. Start with at least Rs.10,000.
What happens if my intraday position is auto-squared off?
Lemonn closes your position at market price and charges a square-off fee. The resulting profit or loss is credited/debited to your account.
Is intraday trading profitable for beginners?
Most beginners lose money initially. Treat your first 6 months as a learning phase; trade small, keep a trade journal, and focus on risk management over profits.
Can I do intraday on ETFs?
No. ETFs settle on T+1. Only equity shares listed on NSE and BSE are eligible for MIS intraday orders.
What is the best stock for intraday trading?
Nifty 50 stocks with high daily volumes; HDFC Bank, Reliance, Infosys, TCS, ICICI Bank are the safest choices for beginners. Avoid illiquid small-caps.
Disclaimer
The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Lemonn (Formerly known as NU Investors Technologies Pvt. Ltd) do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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