Intraday Return

DEFINITION of 'Intraday Return'

One of the two components of the total daily return generated by a stock. Intraday return measures the return generated by a stock during regular trading hours, based on its price change from the opening of a trading day to its close. Intraday return and overnight return together constitute the total daily return from a stock, which is based on the price change of a stock from the close of one trading day to the close of the next trading day. Also called daytime return.

BREAKING DOWN 'Intraday Return'

Academic research reveals that intraday return is a bigger contributor to total return than overnight return. It also suggests that there is a slight negative correlation between overnight return and intraday return.


Intraday return is of particular importance for day traders, who use daytime gyrations in stocks and markets to make trading profits, and rarely leave positions open overnight.

RELATED TERMS
  1. Overnight Return

    One of the two components of the total daily return generated ...
  2. Return

    The gain or loss of a security in a particular period. The return ...
  3. Intraday

    Another way of saying "within the day". Intraday price movements ...
  4. Abnormal Return

    A term used to describe the returns generated by a given security ...
  5. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  6. Target Return

    A pricing model that prices a business based on what an investor ...
Related Articles
  1. Fundamental Analysis

    Explaining Expected Return

    The expected return is a tool used to determine whether or not an investment has a positive or negative average net outcome.
  2. Investing Basics

    Calculating Annualized Total Return

    The annualized total return is the average return of an investment each year over a given time period.
  3. Trading Strategies

    What Does Intraday Mean?

    Intraday is another way of saying “within the day.”
  4. Term

    Understanding Total Returns

    Total return measures the rate of return earned from an investment over a period of time.
  5. Mutual Funds & ETFs

    What are Excess Returns?

    Excess returns are investment returns that exceed a benchmark or index with similar risk.
  6. Can Your Retirement Portfolio Rely on High Rates of Return?

    Some experts speculate that stock market returns may be headed downward and investors should strategize accordingly. But are they right?
  7. Investing Basics

    More Ways to Evaluate Portfolio Performance

    The Jensen measure is another tool investors use to include risk when measuring portfolio performance.
  8. Term

    What's a Return of Capital?

    A return of capital is an investment return that is not considered income.
  9. Investing

    4 Benefits of Holding Stocks for the Long Term

    Discover some of the benefits that come from buying and holding stocks for longer periods of time, such as tax savings and risk minimization.
  10. Fundamental Analysis

    The Most Accurate Way To Gauge Returns: The Compound Annual Growth Rate

    The compound annual growth rate, or CAGR for short, represents one of the most accurate ways to calculate and determine returns for individual assets, investment portfolios and anything that ...
RELATED FAQS
  1. What's the difference between absolute and relative return?

    Knowing whether a fund manager or broker is doing a good job can be a challenge for some investors. It's difficult to define ... Read Answer >>
  2. What is the difference between a company's annual return and its annualized return?

    Understand the importance of calculating a company's annual return and its annualized return, and learn the differences between ... Read Answer >>
  3. What is a good annual return for a mutual fund?

    Explore the question of what constitutes a good annual return from investing in mutual funds and the factors that affect ... Read Answer >>
  4. How is the expected market return determined when calculating market risk premium?

    Find out how the expected market return rate is determined when calculating market risk premium and how these figures are ... Read Answer >>
  5. How does the required rate of return affect the price of a stock, in terms of the ...

    First, a quick review: the required rate of return is defined as the return, expressed as a percentage, that an investor ... Read Answer >>
  6. How do you calculate the excess return of an ETF or indexed mutual fund?

    Read about how to calculate and interpret the expected return generated by an exchange-traded fund (ETF) and an indexed mutual ... Read Answer >>
Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center