How much money is required for intraday trading?

money required for intraday trading

Intraday trading is one of the most popular concepts of actively participating in your wealth creation. Traders resort to intraday trading in order to make profits based on the movements in the market indices.


Compared to regular investing, intraday trading requires regular, daily participation in pulling and pushing capital in the stock market. When done rightly, intraday trading could help you make tangible profits on a daily basis.


There certainly are a lot of factors involved in this equation, something we will guide you through in this blog. We will understand how you can profit from it and how much money is required for intraday trading. 


One thing’s for certain though – intraday trading requires a personalized roadmap. Based on your goals and the tools you have available at your disposal, you can make or break your portfolio in a certain way.

How much money is required to start intraday trading?

There’s no right or wrong amount to get started with intraday trading – no amount is enough and no amount is also less. The currency, equity, and commodity trading also play an important role in this equation. 


It can be any amount, keeping in mind the minimum upfront margin requirement as mandated by SEBI. 

Important aspects of Intraday Trading

1. Requirements to start intraday trading

The main requirement to start intraday trading is to have a trading and Demat account with a SEBI registered stockbroker. Once the trading and demat account are set up, you can start with a minimum amount for intraday trading. 


Make sure you have enough knowledge about the charges being levied for intraday trading as they’ll be different from delivery-based trading. 


In-depth knowledge about intraday trading and how to place orders is important. It’s also important to understand the different anomalies of intraday trading, including how to calculate profits.

2. Where to invest in Intraday trading? 

Traders often advise keeping volume and liquidity as the main aspects in mind while choosing your stocks for intraday trading. These stocks should be high in volume and liquidity. 


It’s advisable to select such assets to invest that are less volatile than others in the long run. Such stocks can equip you with the right opportunities and reduce risks for you, making entries and exits convenient for you as well.


You can also make a list of stocks according to the sectors in which they function to monitor their price movement. This allows you to understand the entry price levels and carefully analyze the performance of each of these stocks.

3. Using stop loss for your benefit 

Stop loss is a key feature to save you from a lot of trouble of losing more than you could afford. 


Stop loss refers to an advance order to sell an asset you hold when it reaches a certain price. While setting a stop loss, you provide a value that closes your positions on the trade, in case the stock goes haywire due to any reason. 


It helps to abstain traders from facing any substantial losses whenever the market is too volatile. You also need to remember that these trades need to be closed on the same working day or else they will be squared off automatically, in case there is insufficient margin in your trading account.


When we talk about the amount required in intraday trading, the right answer is that there’s no fixed amount that you need to make tangible profits. It all depends on your risk tolerance and the capital you can invest.


Many investors resort to intraday trading as a full-time job and are earning quite well from the same. Even you can make a living out of it as there is no minimum amount needed to start intraday trading and the only minimum requirement is to have a trading and Demat account. 


If you feel that you can invest your time in doing market research for choosing the stocks and gaining some knowledge of the market then you can try intraday trading to earn some decent profits. 

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