Day Trading refers to the practice of buying and selling financial instruments ó such as stocks, derivatives, or currencies ó within the same trading day. The goal of day trading is to profit from short-term price fluctuations, with all positions squared off before the market closes. This means no delivery or overnight holding of securities takes place.

In day trading, traders rely heavily on technical analysis, real-time data, and price charts to identify short-term trends and entry or exit points. They often use strategies such as momentum trading, breakout trading, and scalping to capitalize on small price movements. Since trades are closed the same day, profits and losses are realized instantly, making timing and discipline crucial for success.

Day trading differs from delivery trading in that it does not involve the transfer of share ownership. Instead, traders only speculate on price movements. It requires an active trading account linked with a broker and sufficient margin to execute high-volume trades. The leverage offered by brokers allows traders to take larger positions with smaller capital, but this also increases potential risk exposure.

In India, day trading is regulated by the Securities and Exchange Board of India (SEBI) to ensure transparency and investor protection. SEBI mandates margin requirements and daily settlement rules to minimize systemic risk. Common instruments used for day trading include equities, index futures, and options contracts traded on exchanges like the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

While day trading offers opportunities for quick gains, it also carries significant risks due to market volatility and the use of leverage. Successful traders often employ risk management techniques such as stop-loss orders, position sizing, and maintaining emotional discipline to control losses.

In summary, day trading is best suited for experienced traders with a sound understanding of market dynamics, technical analysis, and risk control. It can be profitable when approached with knowledge and discipline, but for most investors, a long-term or delivery-based strategy remains a more stable path to wealth creation.