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.
- What Is Delivery Trading?
- What Is Intraday Trading?
- Difference Between Intraday And Delivery
- Intraday Vs Delivery – Quick Summary
- Intraday Vs Delivery Trading – FAQs
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.
|Parameter||Intraday Trading||Delivery Trading||Example|
|Holding Period||Same trading day||No fixed period||Intraday: Buy and sell on the same day; Delivery: Hold for weeks, months, or years|
|Objective||Short-term gains||Long-term investment||Intraday: Profit from hourly price changes; Delivery: Invest in a company’s long-term growth|
|Risk Level||Higher||Generally lower||Intraday: Risk of rapid price fluctuations; Delivery: Lower risk but exposed to market trends|
|Charges & Fees||Brokerage fees can be higher due to frequent trades||Generally lower fees due to fewer transactions||Intraday might incur higher brokerage fees, while delivery trading is free, especially if using services by Alice Blue|
|Required Tools & Analysis||Real-time data and technical analysis are crucial||Fundamental analysis is more important||Intraday: Use of technical charts; Delivery: Focus on financial statements|
Intraday Vs Delivery – Quick Summary
- 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.
- 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.
- Intraday trading means buying and selling stocks within the same day to capitalize on short-term price fluctuations.
- 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.