How to Do Intraday Trading in Zerodha: A Complete Guide

Introduction

Intraday trading is an exciting and dynamic approach where traders buy and sell stocks within the same trading day to capitalize on market volatility. Unlike delivery-based trading, where stocks are held for the long term, intraday trading focuses on short-term price movements.

For active traders in India, Zerodha is one of the most trusted and widely used trading platforms, offering a seamless intraday trading experience with powerful tools and competitive pricing. This blog serves as a comprehensive step-by-step guide on how to do intraday trading in Zerodha, helping both beginners and experienced traders refine their strategies.

What You’ll Learn:

• Understanding intraday trading and its advantages.
• How to find stocks for intraday trading using Zerodha’s tools.
• How to select stocks for intraday one day before using technical and fundamental analysis.
• How to place an intraday trade in Zerodha with practical examples.
• Strategies to minimize risks and maximize profits in intraday trading.
• Advanced tips and common mistakes to avoid for long-term success.

Let’s dive deep into the world of intraday trading on Zerodha!

What Is Intraday Trading?

Definition & Key Features

Intraday trading involves buying and selling stocks within the same trading session. Traders take advantage of price fluctuations throughout the day to generate quick profits.

Key Features of Intraday Trading:

• Short Holding Period: Trades are executed and squared off before the market closes.
• Market Volatility: Traders benefit from short-term price movements rather than long-term growth.
• Leverage & Margin: Many brokers, including Zerodha, offer margin trading, allowing traders to control larger positions with less capital.
• Risk & Reward: Intraday trading can be highly profitable but also carries significant risks due to rapid market changes.

Why Intraday Trading Requires Strategy and Discipline

Unlike investing, where time allows for price correction, intraday trading demands quick decision-making, proper research, and strong discipline. Traders must:

• Have a well-defined entry and exit strategy.
• Use stop-loss orders to minimize risk.
• Analyze stocks based on technical indicators and price action.
• Keep emotions in check and avoid impulsive trades.

Why Choose Zerodha for Intraday Trading?

Zerodha is the largest stockbroker in India, known for its user-friendly interface, low-cost trading, and advanced tools. Here’s why it’s perfect for intraday traders:

1. Low Brokerage Fees: Zerodha charges flat ₹20 per executed trade, keeping costs minimal.
2. Advanced Charting Tools: Traders can access real-time charts, technical indicators, and historical data.
3. Margin Trading Facility (MIS): Allows traders to leverage their capital and take larger positions.
4. Auto Square-Off Feature: Ensures all intraday positions are closed before market close to avoid penalties.
5. User-Friendly Platforms: Zerodha Kite (web & mobile) and Zerodha Streak (algorithmic trading) make trading seamless.

Zerodha Intraday Trading Charges

Below are the charges levied in the Zerodha intraday trading –

Particulars	Charges
Brokerage	0.03% or ₹20/executed order whichever is lower
STT/CTT	0.025% on the sell-side
Transaction Charges	NSE: 0.00325% BSE: 0.003%
GST	18% on (brokerage + transaction charges)
SEBI Charge	₹5/Crore
Stamp Charges	0.003% or ₹300/crore on buy-side

Zerodha Intraday Trading Timing

One can perform intraday trading with Zerodha at any time during the market opening hours. However, you need to be a little cautious while closing your position. You can use some Zerodha intraday trading tips to increase your profit.

If an open intraday MIS / BO / CO position has not been squared off before the closing of the market, it gets automatically settled roughly 3:20 pm. If due to any reason, the intraday trading position has not been settled till the closing of the market, the position gets transformed into CNC position.

You should watch the Zerodha trading demo to get more insights of the trading process.

Step-by-Step Guide to Doing Intraday Trading in Zerodha

1. Setting Up Your Trading Account

To begin intraday trading on Zerodha, follow these steps:

• Open a Zerodha Trading & Demat Account online.
• Enable Intraday MIS (Margin Intraday Square-off) product type.
• Deposit sufficient funds in your Zerodha account to meet margin requirements.

2. Choosing the Right Stocks for Intraday Trading

Selecting the right stocks is crucial. Follow these guidelines:

How to Select Stocks for Intraday One Day Before?

• High Liquidity: Choose stocks with high trading volume (e.g., NIFTY 50 stocks).
• Volatility: Stocks that move at least 2-3% daily provide good opportunities.
• Sector Trends: Look for stocks in trending sectors (IT, Banking, Pharma, etc.).
• Earnings & News: Stocks reacting to earnings reports or major news offer quick price movements.
• Technical Analysis: Use indicators like Moving Averages, RSI, MACD, and Bollinger Bands to predict price action.

Zerodha offers Stock Screener & Market Watchlists to help traders identify intraday trading opportunities efficiently.

3. Placing an Intraday Order in Zerodha

Follow these steps to place an intraday trade:

• Log in to Zerodha Kite.
• Select the stock you want to trade and choose Intraday (MIS) as the order type.
• Decide between:
  • Market Order: Executes trade instantly at the best available price.
  • Limit Order: Sets a specific price for execution.
• Set Stop-Loss & Target Price to manage risk.
• Confirm the trade and monitor it using Zerodha’s live order book.

4. Monitoring Your Intraday Trades

• Track real-time price movements with Zerodha’s live charts.
• Use technical indicators to adjust strategies.
• Modify or exit positions based on market conditions.
• Avoid emotional decisions; stick to pre-planned strategies.

5. Closing Your Intraday Trades

• Manually Close Position: Sell before the market closes to secure profits or minimize losses.
• Auto Square-Off: Zerodha closes all open intraday positions automatically at 3:20 PM.

6. Reviewing Your Performance

• Analyze past trades using Zerodha’s dashboard.
• Identify strengths and weaknesses in trading decisions.
• Continuously improve trading strategies based on historical data.

Advanced Intraday Trading Strategies

1. Breakout Trading Strategy
   • Identify stocks breaking key resistance or support levels.
   • Enter a trade when the breakout is confirmed with high volume.
2. Momentum Trading Strategy
   • Trade stocks with strong price movements in a single direction.
   • Use Relative Strength Index (RSI) and MACD indicators.
3. Scalping Strategy
   • Take multiple small trades within minutes to capture small price movements.
   • Requires high-speed execution and a low brokerage platform like Zerodha.

Common Mistakes to Avoid in Intraday Trading

• Overtrading: Placing too many trades leads to excessive brokerage costs.
• Ignoring Stop-Loss: Risking capital without protection can wipe out profits.
• Emotional Trading: Fear and greed can lead to impulsive, irrational decisions.
• Chasing High-Risk Stocks: Avoid stocks with low liquidity and erratic price movements.

Learn more about stock market in our Indian Stock Market Basics for Beginners – A Complete Guide Blog

Conclusion

Mastering how to do intraday trading in Zerodha requires strategy, discipline, and market knowledge. With Zerodha’s low-cost structure, advanced tools, and user-friendly platform, traders can confidently execute intraday trades and improve their success rate.