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Intraday Trading Explained: How It Works, Risks & Rewards
8 minutes read | 04-07-2025
What is Intraday Trading?
Intraday trading, also known as day trading, is about opening and closing positions within the same trading day. No positions are held overnight; everything is settled before the closing bell. So, it’s a strategy, or trading style. Traders who follow it don’t want to get caught by after-hours price swings or unexpected news while they sleep. But in practice, it’s a nerve-testing style of trading that demands discipline, time, and a solid plan.
At Hash Hedge, we don’t just trade: we build systems that help traders cut through the noise and stay consistent. If you want to stop risking your funds, start trading with Hash Hedge.
Key advantages of intraday trading
Part of the appeal is adrenaline. The idea of making money in minutes or hours is tempting. But there are more pros
No overnight risk: You close your trades before bedtime.
No risk of news: Since you close your day, the market ends.
Leverage potential: Many brokers and exchanges allow margin to get higher returns with low capital.
Skill over luck: With the right strategy, you can build consistency instead of waiting on long-term market moves.
The flip side: what’s tough about day trading
Of course, the reality check is important. Intraday trading can drain both your wallet and your energy if you’re unprepared. Here’s the not-so-fun side:
Stress factor: Constant decision-making and monitoring charts are exhausting.
High transaction costs: Frequent trades mean more fees and spreads eating into profit.
Requires time: It’s not “set and forget.” You need to be at your screen.
Learning curve: Beginners often underestimate how much skill it takes to be consistently profitable.
Emotional rollercoaster: FOMO, greed, and revenge trading.
Best Tools for Intraday Trading
Tool;Why It Matters
Charting Platforms;Visualize price action, track levels, and plan entries/exits
News Feeds;React to market-moving events
Volume & Price Indicators;Confirm trends, spot reversals, and avoid false breakouts
Trading Journal & Plan;Build discipline, track mistakes
Hash Hedge Platform;All-in-one solution: charts, execution, funding up to $100,000, 160+ crypto pairs
Some social media gurus sell dreams of 500% gains in a month. Reality check: consistent intraday profits are possible, but they’re usually modest percentages that compound over time. A 2% gain per week might sound small, but annualized, it’s huge.
The real reward is control: you’re not at the mercy of long-term cycles. You trade your edge, your rules.
Intraday vs Swing Trading: What’s the Difference?
Aspect;Intraday Trading;Swing Trading
Holding period;Buy and sell on the same day. No overnight positions.;Hold for several days or weeks, waiting for bigger moves.
Time needed;Full focus during market hours. Constant chart-watching.;Less screen time. Easier to combine with a full-time job.
Risk;High. Fast intraday swings can wipe out gains quickly.;News can affect overnight, but more time to adjust.
Profit per trade;Small gains, but many trades in a day.;Larger gains per trade, fewer trades overall.
Number of trades;Several trades daily. High frequency.;A few trades weekly. Focus on quality.
Skills required;Strong technical skills, fast reactions, and risk control.;Mix of technical and fundamental analysis.
Capital;Often uses margin and leverage.;Flexible.
Impact of news;Safe from overnight news.;Sensitive to after-hours events.
Do I enjoy fast decisions and constant engagement?
Can I handle stress without tilting?
Do I have 3–5 hours daily to watch markets?
If yes, intraday trading might fit. If not, swing trading or long-term investing may suit you better. There’s no shame in picking the style that matches your personality. Try an intraday strategy today with Hash Hedge. More than 4,500 traders use Hash Hedge to push their strategies further, with over $11M paid out. Zero hidden commissions and access to 160+ crypto pairs.
FAQs
Yes. Most crypto exchanges support both. You can open and close trades within the same day (intraday) or hold positions for days/weeks (swing). The interface usually lets you set stop losses, take profits, and timeframes for both styles.
Swing trading is usually safer for beginners because crypto moves 24/7 and intraday requires constant attention. Swing lets you analyze higher timeframes and avoid the stress of every small price move. Still, overnight volatility and sudden news remain a risk.
Intraday traders often use high leverage (5x or more), but this increases the risk of liquidation within hours. Swing traders usually use low or no leverage, focusing on bigger moves over time.
Hash Hedge is the first crypto prop company founded in 2023. It is the only proprietary trading firm that provides traders with a choice of over 200 crypto assets to trade with a maximum leverage of up to 100. Every week, we list new assets recently introduced on Tier-1 crypto exchanges. Hash Hedge's mission is to rid traders of trading restrictions that prevent them from reaching their maximum potential. That's why we have no hidden rules, commissions, or restrictions on weekend trading and news trading.
All information provided on this website is intended solely for the purpose of learning about trading in the financial markets and in no way constitutes specific investment advice, business advice, analysis of investment opportunities or similar general advice regarding trading in investment instruments.