How much return can I expect from intraday trading?
Yes, you can expect 1\% returns on a daily basis from the share market on your capital, but not from only intraday trading. You just have to do swing trading and you can earn 1\% every day on an average by end of the month.
How is intraday P&L calculated?
P&L Calculation in Intraday Options Trading
- Profit = { (10850-10800) *75 } – 7500 = -3750 = 3750 Loss. i.e. Profit = { (Current price- Strike Price) * Lot Size} – Premium paid **OR**
- Profit = 9000 – 7500 = +2500 = 2500 Profit. i.e. Profit = Total Sell premium – Total Buy Premium.
What is a good profit in intraday trading?
Please upvote, share & comments if you want more such learning & researched answers. While there is no rule for a sufficient profit in intraday trading, even a 2\% profit in day trading is considered a good profit. The stock market can be volatile, and it’s difficult to predict the direction your purchased stock will go in.
How are intraday transactions squared off in stock market?
All intraday transactions are squared off by the end of the trading day. The trader does not take actual delivery of shares. The intention is not to invest but to earn profits from fluctuations in prices of the stock. As per the Income Tax Act. the applicability of tax audit can be determined on the basis of Trading Turnover.
Is tax audit applicable for intraday trading?
As per the Income Tax Act. the applicability of tax audit can be determined on the basis of Trading Turnover. The definition of turnover is different for each type of trading transaction. In case of Intraday Trading, the Turnover equals Absolute Profit.
Can intraday trading losses be carried forward?
Under Equity Intraday Trading, the trader can claim and carry forward the loss if a tax audit has been conducted by a professional chartered accountant in practice. This loss can be carried forward to future years and set off against future profits to reduce the income tax liability.
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