Difference Between Intraday and Positional Trading?

Intraday trading is buying and selling stocks within a single trading session to profit from short-term price fluctuations. In contrast, Positional trading refers to a long-term strategy in which traders have to hold the stocks for a comparatively longer time.

LAFFAZ Media
LAFFAZ Media

Whether you use intraday trading or positional trading solely depends upon whether your goals and objectives are for the short run or long run, respectively. To understand the difference between intraday and positional trading, read this article. We‘ve crafted a simple and effective comparison below.

What is Intraday Trading?

Intraday Trading refers to buying/selling shares on the same day using the online trading platform. The main aim of the intraday is to make profits through short-term price fluctuations.

Overall, you have to make several trades in a single trading session and settle all the positions before the market closes at 3:15 PM. This fast-paced trading requires you to know active monitoring, technical analysis skills, and high tolerance risk factors.

What is Positional Trading?

Positional Trading refers to holding a trade position for a longer time period than a day, such as several days, weeks, or even months. Simply put, you have to hold the position for a longer time to have the benefit of long-term price appreciation.

Positional Trading has diverse timelines and requires you to proficiently learn technical and fundamental analysis to make successful trades.

If you’re also planning to start trading, you might want to check out Upsurge.club’s courses on share market basics for beginners.

What is the Difference Between Intraday and Positional Trading?

Let us understand the difference between intraday and positional trading.

AspectIntraday TradingPosition Trading
Time FrameExecuted within a single trading dayMay take days, weeks, or months
ObjectiveYou capitalize on intraday price fluctuation in the underlying marketYou capitalize on medium-term to long-term price movements in the underlying market
Trade FrequencyTake multiple trades within a single trading dayTake only fewer trades over a long period
Analysis Technique RequiredUtilize technical analysis and short-term price patternUtilize technical analysis, but highly relied upon fundamental analysis
Capital RequiredLeverage facility available for the traders that require lower capitalRequires higher capital due to holding long-term positions
Costs IncurredRequires higher costs because of a higher number of tradesRequires lower costs due to fewer trades
Tools and indicators usedYou have to use tools and indicators like intraday charts, moving averages, intraday volume, RSI, Bollinger Volume, MACD etc.It includes using tools and indicators like debt-to-equity ratios, long-term moving averages, economic data, and financial ratios such as P/E, P/B, P/S, and more.
RiskInvolve price volatility riskInvolve systemic and overnight risk

Conclusion

These are the major differences between intraday and positional trading. Trading with intraday or positional trading completely depends upon your goals and objectives. The key is to understand your needs and take a step accordingly. I also would like to suggest Upsurge.club’s online trading courses to uplift your trading game.


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Asiya
Asiya

Sr. News Editor and Features Writer at LAFFAZ. specializes in topics related to entrepreneurship, finance, technology, and education. As a skilled researcher, Asiya creates insightful, non-technical and semi-technical resource guides that cater to newbie entrepreneurs and wannapreneurs. With a passion for demystifying complex subjects, her writing empowers readers to take informed steps in their entrepreneurial journeys.

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