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We need to close the intraday position on the same day as the settlement happens at the end of the day and to maintain the integrity of the trade deals done during the day. In case the position is not closed, the exchange would go to auction market ot secure the shares or debit cash for shares in addition to penalty to the defaulter.
Intraday trading as the name suggests refers to the trading system, where we have to square-off the trade on the same day. Any buying and selling, the transaction should happen on the same day before the market close.
If short position is created in intraday, it is mandate to close the position on the same day, otherwise the next day, the stock exchange will go auction market and the trader will be imposed with a penalty, resulting in loss of money.
Intraday (within the day) Any buying and selling should happen on the same day.It is mandatory to close the short position on the same day.
It is a good practice to close intraday position on same day since entry decision was already made only by studying market sentiments and not through positional technical analysis. Closing is mandatory only for short position.
As a disciplined trader if a trade has been executed with the perspective of closing it on the same day it should be religiously followed and the trade should be closed on the same day before the close of the market even if it ends in a loss.
In some cases the Intraday trader uses the margin amount provided by the brokers to trade in the market, any transaction that is done using the margin amount has to be closed before the close of the market.
In Intraday trading any short position created has to be exited or bought back before the close of the same day.
In a scenario where the stock is bought in the intention of closing it on the same day with sufficient fund in the account it is not mandate to exit the trade even the intention of buying the stock was for Intraday position, however in scenario’s like using brokers margin amount or creating a short position it is mandate to close / exit the position.
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