You can make money in intraday trading, but most individuals who try do not. SEBI’s study of the equity cash segment found that about 71% of individual intraday traders made a net loss in FY23, and the share was higher among young and very active traders.
Below, we look at what that study found, work through the exact charges on one round-trip trade, explain the margin rules and how intraday income is taxed, and finish with who should stay away and a set of survival rules for those who go ahead anyway.
What intraday trading means
Intraday trading means buying and selling the same shares within one trading day, so no shares reach your demat holdings. Positions left open near the close are squared off by your broker automatically. Because you never take delivery, the aim is to profit from small price moves, often with borrowed money in the form of broker margin.
That makes it a different activity from investing. If you are still deciding which path suits you, our guide to trading vs investing lays out the differences.
What SEBI’s July 2024 study found
In July 2024, SEBI published an analysis of individual intraday traders in the equity cash segment, using client data from the top 10 brokers for FY19, FY22 and FY23. The key findings:
| Finding | Figure |
|---|---|
| Individual intraday traders with a net loss in FY23 | 71% |
| Loss-makers among traders under 30 | 76% |
| Share of intraday traders under 30 | 48% in FY23, up from 18% in FY19 |
| Loss-makers among traders doing more than 500 trades a year | 80% |
| Growth in individual intraday traders (top 10 brokers) | About 15 lakh in FY19 to 69 lakh in FY23, a rise of over 300% |
| Trading costs as a share of results | 57% of net losses for loss-makers; 19% of profits for profit-makers |
Two points matter most. First, frequency hurts: the more trades people made, the more likely they were to end the year in the red. Second, costs are not a rounding error. For loss-makers, charges made up more than half of their losses, so cutting the number of trades is often the fastest way to lose less.
SEBI also found that about one in three equity cash traders traded intraday, and that the share of women traders fell from 20% to 16% over the period, though women had a higher share of profit-makers than men.
What one intraday trade really costs
Charges apply on both the buy and the sell. Here are the current rates for intraday equity at a typical discount broker (as of October 2026, per Zerodha’s published charges and ClearTax’s STT table).
| Charge | Rate | Applies on |
|---|---|---|
| Brokerage | ₹20 or 0.03% per executed order, whichever is lower | Buy and sell |
| Securities transaction tax (STT) | 0.025% | Sell side only |
| NSE transaction charges | 0.00307% (includes investor protection fund levy) | Buy and sell |
| SEBI turnover fee | ₹10 per crore (0.0001%) | Buy and sell |
| Stamp duty | 0.003% | Buy side only |
| GST | 18% on brokerage + transaction charges + SEBI fee | Both sides |
Worked example: one round trip
Suppose Ananya buys 100 shares at ₹1,000 (₹1,00,000) and sells them the same day at ₹1,010 (₹1,01,000). Her gross profit is ₹1,000. Total turnover is ₹2,01,000.
| Charge | Working | Amount |
|---|---|---|
| Brokerage (buy) | 0.03% of ₹1,00,000 = ₹30, capped at ₹20 | ₹20.00 |
| Brokerage (sell) | 0.03% of ₹1,01,000 = ₹30.30, capped at ₹20 | ₹20.00 |
| STT | 0.025% of ₹1,01,000 = ₹25.25, rounded | ₹25.00 |
| NSE transaction charges | 0.00307% of ₹2,01,000 | ₹6.17 |
| SEBI fee | ₹10 per crore on ₹2,01,000 | ₹0.20 |
| Stamp duty | 0.003% of ₹1,00,000 | ₹3.00 |
| GST | 18% of (₹40 + ₹6.17 + ₹0.20) = 18% of ₹46.37 | ₹8.35 |
| Total charges | ₹82.72 |
Her net profit is ₹1,000 − ₹82.72 = ₹917.28. Put another way, the stock had to move about 83 paise per share (roughly 0.08%) just to cover charges. If the stock had instead fallen to ₹995 and she exited, her loss would be ₹500 plus about ₹82 in charges.
Now scale it up. Two round trips of this size a day for 20 trading days is 40 round trips, or about ₹3,309 a month in charges (₹82.72 × 40), before a single rupee of profit. That is how costs came to make up 57% of loss-makers’ losses in SEBI’s study.
Margin rules: why leverage is capped
Before the current rules, many brokers offered far higher intraday leverage. SEBI’s peak margin framework, fully in force from 1 September 2021, changed that. Brokers must now collect the full required margin upfront, and clearing corporations check margins at random times during the day rather than only at the close. A broker that collects too little faces a penalty, so the rules are strictly applied.
For intraday equity, the minimum margin is 20% of the trade value, which works out to a maximum of 5x leverage. Many stocks need more, depending on their volatility. In the example above, a ₹1,00,000 position would need at least ₹20,000 of margin. A 2% move against her would cost ₹2,000, which is 10% of the money she actually put up. Leverage multiplies losses exactly as much as gains.
How intraday profit is taxed
Intraday equity trading is treated as speculative business income, because the trades are settled without delivery. It is not capital gains, so the 20% short-term capital gains rate does not apply. Profit is added to your other income and taxed at your slab rate, and you file ITR-3.
- Losses are ring-fenced: a speculative loss can only be set off against speculative profit, not against salary, capital gains or F&O income.
- Carry forward: unused speculative losses can be carried forward for up to 4 years, only against future speculative profit, and only if you file your return by the due date.
- Turnover and audit: intraday turnover is generally the sum of the absolute profit or loss on each trade, not the value of shares traded. A tax audit applies above ₹1 crore of turnover, or ₹10 crore if cash receipts and payments are each within 5% of the total (section 63 of the Income-tax Act, 2025, which replaced section 44AB from 1 April 2026).
If you hold some shares for the long term too, those gains follow different rules; see our guide to reducing capital gains tax on shares.
Who should avoid intraday trading
- Anyone without an emergency fund of at least six months’ expenses.
- Anyone trading with borrowed money, a credit card or a personal loan.
- People with a full-time job who cannot watch the screen during market hours.
- Students and first-time earners hoping to replace a salary. SEBI’s data shows under-30 traders lose most often.
- Anyone who finds it hard to accept a loss and move on, or who trades to recover the last loss.
Survival rules if you trade anyway
- Fix a trading budget you can lose entirely, separate from your investments.
- Risk 1% or less per trade. With ₹1 lakh of capital, that means a maximum loss of ₹1,000 per trade, set by your stop-loss and position size together.
- Place the stop-loss with the order, not after the trade turns against you.
- Set a daily loss limit, say 3% of capital, and stop trading for the day once you hit it.
- Trade fewer times. Limit yourself to a small number of planned trades a day. SEBI found 80% of those making over 500 trades a year lost money.
- Stick to liquid, large stocks where the gap between buy and sell prices is small. Avoid illiquid small caps; our piece on why to stay away from penny stocks explains the risks.
- Do not use full leverage. Just because a broker allows 5x does not mean you should use it.
- Keep a journal and review costs monthly. If charges are eating more than a fifth of your gross profit, you are trading too often.
- Review after three months. If you are net negative after charges, stop and reconsider rather than adding money.
Many intraday strategies rely on chart reading. Before you build one, read our honest look at whether technical analysis can make money.
Common mistakes
- Converting a losing intraday trade into delivery to avoid booking the loss. A failed trade becomes an unplanned investment.
- Revenge trading after a loss, usually with a bigger position.
- Following tips from social media or paid groups. Anyone charging for trade calls must be SEBI-registered.
- Ignoring charges when judging whether a strategy works.
- Not filing returns in loss years, which forfeits the right to carry losses forward.
If your real goal is to build wealth, the odds are much better with a patient approach; see our long-term investment strategies.
FAQ
What percentage of intraday traders lose money in India?
SEBI’s July 2024 study found that 71% of individual intraday traders in the equity cash segment made a net loss in FY23. Among traders under 30 the figure was 76%, and among those making more than 500 trades a year it was 80%.
How much leverage can I get for intraday trading?
Under SEBI’s peak margin rules, the minimum intraday margin for equity is 20% of the trade value, so the maximum leverage is 5x. Brokers often ask for more on volatile stocks.
What is the STT on intraday trading?
STT on intraday equity is 0.025% on the sell side only (as of October 2026). Budget 2026 raised STT on futures and options from 1 April 2026 but did not change the intraday equity rate.
Can I set off intraday losses against my salary?
No. Intraday losses are speculative and can only be set off against speculative profits. You can carry them forward for up to 4 years if you file your return on time.
Is intraday trading better than F&O for beginners?
Intraday equity has no time decay and lower leverage, and SEBI’s loss rate for it (about 71%) is lower than for F&O (close to 90%). That still means most participants lose. Our guide on making money with options trading covers the F&O side.
Ramesh Iyer is the pen name of the founder and editor of StocksInfo.AI, an independent investor in Indian equities, mutual funds and ETFs since 2020. Every article is researched from primary sources such as SEBI, AMFI, NSE and the Income Tax Department, and fact-checked before publishing. About us