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A position trader is a type of stock trader who holds a position for long term.
Intra day trading deals with buying and selling shares on same day during the trading hours.
Positional trading is holding the shares for more than a day, week, month or year.
Intraday trading is buying and selling stocks within a day and there should not be any holdings at the time of settlement.
Positional trading is holding a stock for a longer period of time
In intraday trading , holding period of stock is within a day
Before getting in to understanding the positional trading and Intraday trading
we need to understand different instruments of trading stocks
Basically there are two instruments of trading stocks
Cash Market & Derivative Market ( Derivative market is also known as Future & Option Market )
Now
When you Buy or Sell any stock with the intention of square off with in that day itself before
3.30 pm when market close it is called Intraday
YOU can Buy first and Sell later
or Sell first and buy later also
( when you sell something in intraday you must buy it before market close at 3.30pm
or else you will be charged heavy penalty if settlement is not done it goes to auction market )
If you Buy stock in Cash market with intention of keeping it for few days
it is called POSITIONAL TRADING
( Note : you can buy and hold as per your margin in cash market but you can not sell and hold it for by any chance in cash market )
If you want to Sell and hold it for more then one day then you have to create a Short Position in Future Market
Intraday trading is stricly limited to that day only
incase if you have bought something and you wish to hold then you can pay margin accordingly
but no matter how much margin you have you can not sell and hold in cash market
Positional Trading can be define in mainly three categories
Short term , Medium term And Long term
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