Intraday is a trading tool optimized for those traders looking to open and close positions in assets such as stocks in the same trading day. The tool is particularly useful for taking advantage of small price movements. The trick to success is a well rounded strategy.
In the world of trading, day traders or intraday traders refer to people who open and close trading positions in the same trading day. In particular, they are people who leverage large sums of money to take advantage of small price movements in highly liquid assets such as stocks and indices.
The trick is to avoid making spontaneous and impulsive trades. To that end, you need a sound trading strategy with clearly defined entry points, targets, stop losses and tweaking strategies. For example, let’s say DAX30 is trading at 12580.28 at 08:13 UTC. Based on market news and insights, you speculate that the price of the asset will fall by the time the market closes.
Using the Intraday trading tool, you can place a Put option on the underlying asset. You decide to set the Expiry Time to 15:15 UTC. At the set Expiry Time, if the asset moved in the direction you anticipated, the trade will be In-The-Money.
How to Use The Tool
To use the Intraday trading tool, simply follow the steps below.
- Log in to your Stellar Finance account and head to the Trading Room.
- Choose Intraday from the toolbar. It is the second item on the bar, next to Binary Options.
- Choose an asset to trade with. This can be a stock, a commodity, a currency pair or an index.
- Study the price graph to determine the direction in which the underlying asset is most likely to move next.
- Choose an Expiry Time. On the platform, this is a pulldown menu.
- Enter an investment amount.
- Choose a payout percentage. This determines your risk level and protected amount.
- Click on “Call” or “Put”. Approve and confirm the trade.
Note that on the Stellar Finance trading platform, you can change the timeframe and type of chart you use to analyze the price movements of an asset. The available timeframes range from one hour to one week. The chart types are ticks, candles and ohlc.
Features of Intraday
Day trading is a difficult skill to master but with this tool, you can implement a winning trading strategy. With enough time and consistent performance evaluation, you can generate decent returns. The challenge is to use a well-defined strategy as compared to chasing profits.
With Intraday,you can also view a Traders Sentiment bar that lets you analyze how other traders are trading the asset. You also have a real-time feed of the latest prices of the asset that runs along the right hand side of the price graph.
3 Trading Strategies That You Can Use
Scalping is a trading strategy that allows traders to make profits on small price movements. It involves a trader making anywhere between 10 to a couple hundred trades in a single day. As soon as a trade becomes profitable, it is closed.
A fade is a contrarian investment strategy that involves placing a Put option on an asset after rapid moves upward. It is based on the premise that the asset is overbought or early buyers are ready to begin taking profits or may be scared out.
If you want to use a momentum-based strategy, all you have to do is place a Call option on an asset that has been trending up. Conversely, if the asset is trending down, place a Put option. The strategy involves trading on news releases.