What is delivery trading and difference between intraday and delivery trading (2024)

Delivery Trading:

You know that trading in the stock market is mainly done in two ways, Intraday and Delivery Trading. We have told you about intraday trading in the previous article. Through today’s article, we will tell you what is Delivery Trading, how to do Delivery Trading, the Fees involved in Delivery Trading, the Advantages, Disadvantages of Delivery Trading, and what is the difference between Delivery Trading and Intraday Trading.

If you want to invest money in the stock market, then you should also know about all the terms related to it. It is very important for every investor to know about delivery trading because with its help you can earn good money with less risk.

We have tried our best in this article to give you complete information about delivery trading so that all the confusion related to delivery trading can be cleared in your mind. So let’s start this article and know what is delivery trading in detail.

What is Delivery Trading

sequence

1 What is Delivery Trading

2 Delivery Trading Rules

3 How to do Delivery Trading

4 Delivery Trading Tips

5 Charges on Delivery Trading

6 Advantages Of Delivery Trading

7 Disadvantage Of Delivery Trading

8 Difference Between Intraday and Delivery Trading

9 Delivery Trading FAQs

10 Conclusion: What is Delivery Trading

10.1 Related Articles

In Intraday Trading, we have learned that buying and selling of shares have to be done within the same day (from the time of the opening of the stock market to the close), but delivery trading is very different from intraday. In delivery trading, the investor can sell the shares he has bought at any time, there is no time limit to sell the shares.

Under delivery trading, when investors buy shares from the stock market, they can hold the shares in their Demat account for any length of time. If they want, investors can sell their shares only on the second day of purchase or even after 10 years.

Delivery trading is best for those investors who believe in Long Term Share Investment. Delivery Trading is considered to be less percent risky than Intraday. Big investors of the world like Warren Buffett, and Rakesh Jhunjhunwala rely on Delivery Trading only.

There is no margin of any kind by the broker on buying shares in delivery trading, we have to buy the share at the same price as its actual price. To do delivery trading, the investor should have a sufficient amount of money so that he does not face any problems in buying and selling shares.

Simply put, delivery trading is such trading by which an investor can invest his money in the stock market for a long time. In this, it is completely the choice of the investor that when he wants to sell his shares.

Delivery Trading Rules

There are also some rules for doing delivery trading, about which it is very important for an investor to know –

• In delivery trading, you can hold the purchased stock for a long period of time.
• A demat account is necessary for delivery trading.
• In delivery trading, the investor has to pay the full amount to buy the shares.
• No margin is available in delivery trading, the investor has to buy the shares at a fixed price.

how to do delivery trading

If you want to invest in the stock market for a long time, then delivery trading is the best for you. With delivery trading, you can earn very good money after a long time.

To do delivery trading, you need a Demat Account, you can open your Demat Account from Full Service Broker or Discount Broker.

If you have less budget then you can open your Demat Account from Discount Broker only. Some Discount Brokers also get your Demat Account opened for free.

After opening a Demat account, you can start trading from the broker’s official website or mobile application. For this, first you have to select Delivery Trading and then according to your understanding, you have to buy the shares of the company and hold the shares in your Demat Account. When you feel that this is the right time to sell shares, then you can earn good money by selling shares.

Following are some of the Best Discount Brokers from where you can open your Demat Account –

• Upstox App
• Groww App
• Zerodha App
• Angelone App
• 5Paisa App

Delivery trading tips

If you are a new investor in the stock market, then you can keep the following things in mind while doing delivery trading, so that you will be more likely to get benefits in the long term.

• Before investing in a company in delivery trading, get complete information about the company from various sources and check them thoroughly.
• Wait for the right time to sell the stock, do not take any decision in haste.
• In delivery trading, it is always advisable to invest in stocks of different companies as the risk appetite is reduced by diversifying stocks and funds.
• To do delivery trading, the investor should have sufficient funds in his account so that he does not face any problems in buying and selling shares.
• In delivery trading, it is also advised that the target of stop loss should also be set so that there will be no more loss.
• Do not invest all your money in stocks. It is advised that investors should invest only 10 percent of their portfolio.

Delivery trading charges

If you want to do delivery trading, then you should also know about the charges involved. So let’s know what are the charges involved in delivery trading –

• Most of the brokers do not charge any brokerage charge in delivery trading but some brokers charge some percentage of brokerage charge in delivery trading also.
• GST is charged which is levied on the services provided by the government as well as in the transactions with the broker.
• Fees are also levied by SEBI in delivery trading.
• STT, CTT, and Transaction Charge are also applied in delivery trading.

Advantages of Delivery Trading

Following are the advantages of delivery trading –

• In delivery trading, you can invest your money in the stock market for a long time.
• In delivery trading, the investor can hold the stock till the right time.
• Most brokers do not charge any brokerage for delivery trading.
• Delivery trading involves less risk.
• In delivery trading, the investor is the owner of all his shares, so he also gets a bonus from the company.
• There is more profit in delivery trading because the investors hold the stock for a long time and also get bonuses from the company.

Disadvantages of Delivery Trading

There are also some disadvantages of delivery trading such as –

• The investor should have enough money to do delivery trading, only then he can invest for a long time.
• No margin is available in delivery trading, the investor has to pay in full to buy the shares.
• There is no guarantee of good returns by investing for a long time.
• In delivery trading, the investor has to be patient and wait for the right time to sell the shares.

Difference between intraday and delivery trading

We have told you the difference between intraday and distribution through the table below –

Delivery Trading FAQs

Conclusion: What is Delivery Trading

In this article, we have tried to give you complete information about Delivery Trading Kya Hai so that it can help you in doing delivery trading. If you want to invest money for a long time, then Delivery Trading can be a good option for you as the risk is less in it. If you have patience then you too can earn good money from delivery trading.

In this article, we hope that you must have understood about delivery trading, if you liked this article, then definitely share it with your friends on social media.