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DELIVERY

WHAT ARE DELIVERY TRADES?

In delivery trades, the stocks you buy are added to your Demat account. They remain in your possession until you decide to sell them, which can be in days, weeks, months or years. You enjoy complete ownership of your stocks.

ADVANTAGES AND DISADVANTAGES OF DELIVERY TRADES

You already know the pros and cons of intraday trades. Now, let’s examine the advantages and disadvantages of delivery trading. This could help you to compare intraday trading vs delivery trading better.

ADVANTAGES OF DELIVERY TRADES

  • No Time Limit: Delivery traders are free to hold on to their stocks for as long as they like. This could range anywhere from a few days to several months. If a stock did not perform well in the short term, there is no need to book losses right away. If the stock is good, the trader could hold on for the long term and sell it when the stock rises in value
  • Limited Losses: When buying shares for delivery, traders pay the full value of the shares upfront. So, if the trade does not go as planned, their loss is limited to the purchase price. In comparison, margin traders could face massive losses if their trade moves negatively because of the margin or leverage they have taken. Delivery trades, on the other hand, are done in cash so there’s nothing to lose more than what you have invested.
  • Corporate benefits: By taking delivery of shares, traders become part-owners of the company. They become eligible to receive regular dividend and interest payments. They may also get other benefits such as bonus and rights issues.

    • DISADVANTAGES OF DELIVERY TRADES

  • Low Capital: Delivery traders miss out on the benefits of margin funding. They have to pay the full sum when buying stocks. This entire amount remains blocked until the stock can be sold and limits the potential for big returns as well. To set you up for good, here’s a quick comparison between intraday trading and delivery trading:

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    Date Instrument Short/Long Term Trend (As per Technical Indicator)

    Open Demat and Trading Account with SNPITS - OPEN DEMAT AND TRADING ACCOUNT

    Why Open Demat and Trading Account with us ?

    SNPITS has partnered with ICICIdirect which is amongst India’s largest retail broker and financial product distributor, trusted by ~80 lac customers with a track record of over two decades of service. ICICIdirect.com has revolutionized the world of online investing. This online share trading platform offers a trading account for seamless and hassle-free electronic trading. ICICIdirect offers more than 50 products and services like Equity, Mutual Funds, Derivatives, Futures and Options Currency, Commodity, ETF, Insurance, IPOs, Corporate Fixed Deposits, Loans, NPS, Wealth Management, Corporate Services, NRI Services, Portfolio Management Services, Global Investment, Financial Learning, Tax Services etc. under one roof to help you to achieve your financial goals.

    What sets ICICIdirect apart is its unique research desk that offers various research-based products designed to meet your needs across different time horizons. ICICIdirect award winning research teams have a 75% strike rate since inception.

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