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Intraday Repo

Definition

Intraday repo refers to a repurchase agreement that is executed and settled within the same trading day. In this financial transaction, one party sells securities to another with an agreement to buy them back later on the same day, typically at a slightly higher price. This mechanism is primarily used by financial institutions to manage short-term liquidity needs and optimize their cash positions during the trading day. It provides a flexible tool for short-term financing.