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.

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