Day trading
What you learn in 3 minutesDay trading means opening and closing a position inside one session, so the trade does not carry over to the next day and no swap is charged. On USD/INR, one pip on one standard lot is ₹10, so a 20 pip move against a 0.10 lot position is a ₹20 loss, and the same move in your favour is a ₹20 gain. The decisions are made while the market is moving, which is the part that costs people money.
One day on USD/INR: 30 pips on 0.10 lots
| Step | Amount | Note |
|---|---|---|
| Instrument and price | USD/INR at 83.2500 | the price used for this example |
| Position size | 0.10 standard lots | one tenth of a standard lot |
| Pip value on this size | ₹1 per pip | ₹10 per pip on one standard lot, divided by 10 |
| Entry | buy at 83.2500 | opened during the session |
| Exit | sell at 83.2530 | closed before the session ends, so no swap |
| Move in pips | 30 pips | 83.2530 minus 83.2500 is 0.0030, which is 30 pips |
| Gross result | ₹30 | 30 pips multiplied by ₹1 per pip |
The broker may quote a slightly different price on entry and exit, and may charge a commission or a spread on top. Those costs vary between brokers, so the final figure can be lower than the gross result shown.
The mistake people make here
The common mistake is to hold a losing day trade past the session close, hoping it comes back, which turns a planned day trade into an overnight position with a swap cost. Another is to size the position by feel rather than by the money at risk, so a 30 pip move that looked small becomes a large rupee loss. Decide the exit before entering, and if the session is ending, close the trade rather than carry it. If you want to hold overnight, that is a different decision and should be planned as one.Check yourself
You buy 0.20 standard lots of USD/INR at 83.2500 and close at 83.2525. How many pips is the move and what is the gross result in ₹?
83.2525 minus 83.2500 is 0.0025, which is 25 pips. One pip on 0.20 standard lots is ₹2, so the gross result is 25 multiplied by ₹2, which is ₹50.
A day trade on 0.05 standard lots moves 40 pips against you. What is the loss before costs, and why does it matter that the trade is closed the same day?
One pip on 0.05 standard lots is ₹0.50, so 40 pips is 40 multiplied by ₹0.50, which is ₹20. Closing the same day means no swap is added, so the loss stays at the amount shown before any commission or spread.