What is intraday limit?

Intraday Limit typically refers to a restriction imposed by a brokerage company on the maximum amount of buying power or margin that a trader can utilize within a single trading day. It serves as a safeguard to prevent excessive risk-taking and potential losses.

The specific intraday limit depends on the brokerage company and the individual trader's account type and trading history. It is typically determined based on factors such as the trader's available capital, trading experience, and the risk tolerance established by the brokerage.

Note that intraday limits are specific to each brokerage company. Therefore, it is essential for traders to review and understand the terms and conditions provided by their specific brokerage firm regarding intraday trading limits.