Intraday transactions refer to entering and leaving the market many times in the same day. This strategy can be profitable and requires to be very fast while it can be implemented at any time.

Traders who carry out transactions within the same day (intraday) try to obtain a large number of small profits by exploiting the daily volatility of the forex market. These intraday investors enter and leave the market many times during the same day.

There is very little risk in intraday transactions because they involve positions held only for a small period of time. However, one of the disadvantages of this type of strategy is that the profits obtained in each of these transactions are relatively small.

These types of traders generally do not have an opinion formed about the underlying trend of a given currency. They only know that there is volatility and that they can exploit it.

Intraday strategies based on pre-established ranges:

This type of traders who carry out transactions on the same day is not interested in the news. When an unexpected event occurs and it affects a currency, the range in which it was trading is invalidated. Thus, this type of traders, not having an opinion on the direction of a currency, determines when there will be news scheduled to avoid making transactions during those times.

Intraday strategies based on scheduled events:

On the other side, some traders carry out transactions within the day but want to hear about the news. The largest and most lucrative currency movements come along with economic news and events. Every day, different countries publish economic data, such as employment, inflation and retail sales, among others. This data often determines the direction of currency during that day.
Economic data is difficult to predict, but with good research and instinct for the market, you can sometimes get a great advantage. Identifying a trend in the market is an excellent way to operate with economic data.

Frequently, currency may be more vulnerable to an ad that was not expected to have a great impact, than to one that was expected.

Author's Bio: 

I'm Mansi Dandekar, I am sharing an article about the Types of Intraday Forex Strategies. Here is more information on the Free Currency Tips.