The square-off you should know about
An intraday position that you forget is auto-squared-off by the broker near market close, at whatever the price happens to be. The auto-square-off is a rule, not a service, and it is the moment most beginner intraday losses become permanent. If the position was on margin, the broker also charges auto-square-off fees on some platforms.
The cost structure
Intraday looks cheaper than delivery per order: lower STT (sell side only), no DP charges, and 0.05% brokerage at Upstox. But the cheap structure exists because the trade must close the same day. Frequency, not rate, is what makes intraday expensive: ten intraday orders in a week cost far more in total charges than one delivery trade.
What the numbers say about beginners
Exchange and SEBI disclosures have repeatedly shown that a large majority of active intraday traders lose money on a net basis. That is a published regulatory fact, not an opinion of this site. It is why the guides here treat intraday as something to understand, not something to start with.
Leverage, and the margin rules behind it
Intraday positions trade on margin: the broker fronts part of the position against your balance and the stock’s margin eligibility. SEBI’s peak margin rules, phased in between 2020 and 2021, require the full peak margin to be collected upfront, so the days of near-zero-margin intraday are gone. The leverage multiple varies by stock and broker and is shown on the order screen. A 5x position moves five times as fast in both directions, which is the entire risk conversation in one number.
The cost of intraday versus delivery, worked
Take a ₹50,000 round trip (buy and sell the same value). Intraday at Upstox: brokerage ₹25 total at 0.05% per leg, STT ₹12.50 on the sell, stamp ₹1.50 on the buy, exchange and regulatory about ₹1.70, GST about ₹5, and no DP charge: roughly ₹46 all in. Delivery on the same round trip: brokerage ₹50 at 0.1% per leg (still below the ₹20 cap on each side), STT ₹100 both legs, stamp ₹7.50, DP ₹23.60, and the rest similar: roughly ₹190. Intraday is cheaper per rupee of turnover; the difference is that delivery lets you keep the position.
A concrete example
You buy 100 shares at ₹500 with the intraday option selected and sell them at ₹505 the same day. Turnover is ₹1,00,000. Brokerage is ₹25 per leg (0.05% of ₹50,000), STT is ₹12.50 on the sell, and no DP charge applies because the shares never entered your demat account.
Questions people ask about Intraday trading
The broker auto-squares it off near market close at the prevailing price. That forced close is where many beginner losses become permanent. If the position was leveraged, the square-off can also carry extra charges on some platforms.
The lower STT and zero DP charges reflect that the position closes the same day. The risk is the clock: a falling price becomes a realised loss at square-off, while a delivery holder can wait. Frequency also multiplies costs: ten intraday orders cost more in charges than one delivery trade.
No. BSDA limits holdings value and account count, not trading activity. A BSDA account holder trades intraday through the linked trading account like anyone else; the demat account simply is not involved in intraday settlement.
Brokers auto-square-off intraday positions in the last minutes of the trading session, typically between 3:15 and 3:20 pm, at whatever price prevails. The exact time is set by the broker’s risk policy and shown in its documentation. The square-off is a rule, not a request.
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