METATrading Academy

Share market basics

Positional tradingkai din ya hafton tak position rakhna

Holding a trade for several days to a few weeks, usually based on daily charts and larger trends, between swing trading and long-term investing.

Positional trading means holding a position for days to weeks, sometimes a couple of months, riding a larger move rather than daily fluctuations. Traders use daily and weekly charts, hold through minor pullbacks, and set wider stop losses than intraday traders. In Indian usage, positional often refers specifically to carrying F&O positions overnight, as opposed to intraday MIS trades. Suppose you buy SBI at ₹780 expecting a move toward ₹850 over the next month, with a stop at ₹750; you check the chart once a day rather than watching every tick. Positional trading suits people with jobs, because it needs less screen time. The trade-offs are overnight and gap risk, and, in futures, the daily mark-to-market. Margins for overnight F&O are higher than for intraday. Delivery equity positions carry no leverage, which makes them the gentler way to start.

Lessons that use this term

Video
Basics7 min read

Investing vs trading: the two halves of the share market

The share market runs on two activities that look alike and are nothing alike. Investing is owning a business for years. Trading is profiting from price moves over hours or weeks. Mixing them up is behind most early losses.