Comparison guide
Intraday vs Positional Trading — Strategy, Tax & Risk
Intraday is a job, positional is a side discipline. The capital, tax and edge requirements diverge sharply.
// holding period
Intraday: square off before close. Positional/swing: hold from a few days to a few weeks. Both differ from investing (months to years).
// taxation
Intraday is speculative business income — taxed at slab, audit applicable if turnover crosses limits. Positional trades in delivery are STCG (20% if ≤12 months) or LTCG (12.5% above ₹1.25L). F&O positional is non-speculative business income.
// capital and edge
Intraday requires fast execution, strict risk control (often 0.25–0.5% per trade) and a quantitative edge — most retail traders lose money here. Positional benefits from time decay, fewer trades, and lower stress. Both need a documented setup and stop-loss discipline.
// frequently asked questions
Yes — speculative losses can be set off against speculative gains and carried forward for 4 years. They cannot be set off against salary or other heads.