There are several types of trading you can do in the stock market, depending on your goal, time horizon, and risk level.
Here’s a clear and complete list:
Buy and sell on the same day
No overnight holding
Used by traders who want small profits from short-term price movements
High risk, needs charts and fast decisions
Hold trades from a few days to a few weeks
Profit from short-term trends
Less stressful than intraday
Uses both technical & fundamental analysis
Holding period: weeks to months
Traders follow bigger market trends
Less risk compared to intraday
Suitable for working professionals
Holding stocks for years
Focus on fundamentals
Lowest risk and usually best returns over time
Goal: wealth creation, compounding
Normal buying & selling of stocks
You own the shares in Demat
Contract to buy/sell an asset at a future date
Requires margin (not full money)
High leverage, high risk
Options have two types:
Call Option – Right to buy
Put Option – Right to sell
Strategies:
Buying options (low investment, high risk)
Selling options (high margin, high risk but consistent income)
Borrowing funds from broker to trade
Allows you to trade larger quantities
Risky because losses are magnified
Very fast trading (seconds/minutes)
Many small trades per day
Requires experience + fast systems
Buy today, sell the next day
You sell even before shares reach your Demat
Opposite of BTST
Mostly for futures segment
Automated trades using algorithms
Used by professionals & institutions
| Type | Holding Time | Risk | Suitable For |
|---|---|---|---|
| Intraday | Minutes–Hours | High | Active traders |
| Swing | Days–Weeks | Medium | Part-time traders |
| Positional | Weeks–Months | Medium-Low | Working professionals |
| Investing | Years | Low | Everyone |
| Futures | Days–Months | Very High | Experienced traders |
| Options | Minutes–Months | High | Strategy-driven traders |
| Scalping | Seconds–Minutes | Very High | Experts |
