Intraday vs Delivery

Intraday Vs Delivery

In intraday trading, you buy and sell the stocks within the same trading day, whereas in delivery trading, you can hold the stocks for as long as you wish, be it days, months, or even years. 

Content:

What Is Delivery Trading?

Delivery trading is when you buy and hold shares for an extended period. Unlike intraday trading, there is no compulsion to sell the shares on the same day. Investors often opt for delivery trading when they believe in a company’s long-term prospects. 

For example, if you think Company A will grow substantially over the next five years, you would buy its shares in a delivery trade and hold onto them.

What Is Intraday Trading?

Intraday trading is buying and selling stocks within the same day. The aim is to capitalize on short-term price fluctuations. Traders close their positions by the end of the trading day, avoiding any overnight risks. 

For instance, if you notice that Company B’s stock price rises during certain hours, you could buy shares in the morning and sell them later to make a quick profit. Platforms like Alice Blue offer robust tools for intraday traders.

Difference Between Intraday And Delivery

The main difference between intraday and delivery is that in intraday trading, you buy and sell the stocks within the same trading day, whereas in delivery trading, you can hold the stocks for as long as you wish, be it days, months, or even years. 

ParameterIntraday TradingDelivery TradingExample
Holding PeriodSame trading dayNo fixed periodIntraday: Buy and sell on the same day; Delivery: Hold for weeks, months, or years
ObjectiveShort-term gainsLong-term investmentIntraday: Profit from hourly price changes; Delivery: Invest in a company’s long-term growth
Risk LevelHigherGenerally lowerIntraday: Risk of rapid price fluctuations; Delivery: Lower risk but exposed to market trends
Charges & FeesBrokerage fees can be higher due to frequent tradesGenerally lower fees due to fewer transactionsIntraday might incur higher brokerage fees, while delivery trading is free, especially if using services by Alice Blue
Required Tools & AnalysisReal-time data and technical analysis are crucialFundamental analysis is more importantIntraday: Use of technical charts; Delivery: Focus on financial statements

To understand the topic and get more information, please read the related stock market articles below.

Advantages Of Secondary Market
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Intraday Vs Delivery – Quick Summary

  1. Intraday trading involves buying and selling on the same day for short-term gains, while delivery allows holding for an extended period for long-term investment.
  2. Delivery trading is where you buy shares to hold for a long period, often based on the belief in a company’s long-term prospects.
  3. Intraday trading means buying and selling stocks within the same day to capitalize on short-term price fluctuations.
  4. You can trade stocks at just ₹ 15 brokerage in Intraday & invest at ZERO brokerage in delivery trading with Alice Blue. Open your Alice Blue account now.

Intraday Vs Delivery Trading – FAQs

What is the difference between intraday and delivery?

The main difference between intraday and delivery trading is the holding period. In intraday, you buy and sell shares within the same day, aiming for quick profits from short-term price movements. In delivery trading, you can hold the shares for an extended period, focusing on long-term gains.

Which is more risky, intraday or delivery?

Intraday trading is generally riskier. This is because the stock prices can be highly volatile within a single trading day, and you must make quick decisions. Delivery trading is less risky in comparison, as you have the luxury of time to wait for your investment to appreciate.

Which trading is best for beginners?

For beginners, delivery trading is often recommended. This approach allows new traders to take their time and understand the market without the pressure of having to sell on the same day. It’s a good way to get your feet wet without jumping into the deep end.

Can I Sell Delivery Shares On Same Day?

Yes, you can sell delivery shares on the same day. However, it’s essential to understand that doing so exposes you to the risk of short delivery if the shares aren’t credited to your account in time.

Can I buy in delivery and sell intraday?

Absolutely, you can buy shares as a delivery trade and then sell them off as an intraday trade. Remember that you’ll be subject to intraday trading rules and potentially higher brokerage fees for the selling part. Platforms like Alice Blue can facilitate both types of trades seamlessly.

Can I sell delivery shares the next day?

Yes, you can sell delivery shares the next day, often called “BTST” or Buy Today Sell Tomorrow. This allows you some flexibility but comes with its own risks, like the possibility of short delivery.

What happens if I don’t exit intraday shares?

Suppose you don’t exit your intraday positions by the end of the trading day. In that case, the brokers will automatically close your position at the current market price but this could result in additional charges.

We hope that you are clear about the topic. But there is more to learn and explore when it comes to the stock market, commodity and hence we bring you the important topics and areas that you should know:

Difference between Primary and Secondary MarketBenchmark index meaning
Premarket Tradingwhat is annual return
What is Valuation of Shares?What Is Unclaimed Dividend
Fundamental AnalysisCash Management Bills
DP ChargesMark to Market meaning
Dematerialisation MeaningShelf Prospectus
Difference between sip and mutual fundGold Guinea
Aluminium Stocks IndiaRed Herring Prospectus
CNC OrderWhat is NSE Full Form?
Best Indicator for IntradaySwing Trading Meaning
Sub Broker TerminalCommodity Account Opening
Conservative Hybrid FundNrml full form

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