Intraday Trading vs Delivery. Which is good.
                     INTRADAY TRADING VS 
DELIVERY. WHICH IS 
GOOD?
WHAT IS DELIVERY TRADING?
• In delivery transactions, an investor is not required to buy and 
sell shares within the same day. 
• In such transactions, the individual can hold the shares for a 
longer-term depending on his/her willingness. 
• The duration can range from two days to even two decades or 
more.
Source: groww.in
ADVANTAGES OF DELIVERY 
TRADING
• Holding stocks for long-term
• If you believe in the business and fundamentals of a company and 
believe the company to perform well, you can get the benefit by 
remaining invested in the stock.
• Safer than intraday
• The risk in delivery is comparatively lower than intraday, where the 
profit and loss are booked the same day.
Source: groww.in
DISADVANTAGES OF DELIVERY TRADING
• Blocking funds
• You need to buy stocks by paying the full amount of each share. 
Thus, your funds are until you decide to sell your holding.
Source: groww.in
WHAT IS INTRADAY TRADING?
• Intraday trading involves buying and selling stocks within the 
same trading day. 
• Here stocks are purchased, not to invest, but to earn profits by 
harnessing the movement of stock indices.
• Thus, the fluctuations in the prices of the shares are monitored 
to earn profits from the trading of stocks.
Source: www.angelbroking.com
ADVANTAGES OF INTRADAY TRADING?
• Allowed to buy shares on margin
• The market makes allow an individual to pay only a part of the full 
price; thus, a trader can technically gain more by investing less.
• Allowed to short sell
• If an individual believes that the price of a stock is likely to fall 
during the day, he may sell the shares without even buying at the 
first place or holding from previous transactions.
Source: groww.in
DISADVANTAGES OF INTRADAY TRADING?
• Time frame
• If the stock moves in the direction opposite to what you anticipated, 
you can’t hold the stock for the next day as the position is cut off 
automatically.
• No dividend or other benefits such as bonus, rights
• In intraday trading, you do not hold the stock as on the record date 
of the dividend, bonus, rights issue, etc.
Source: groww.in
THE IMPORTANCE OF TRADING MARGINS
• Another key difference between intraday and delivery-based 
trading lies in trading margins.
• In intraday trading, you have a potential to get more margin 
amounts from the broker. 
• This can be lower than the margin available in delivery-based 
trades. This is because with intraday, there’s an assurance of 
the trade getting settled on the same day.
Source: www.kotaksecurities.com
HOW YOUR APPROACH SHOULD DIFFER FOR 
INTRADAY AND DELIVERY TRADES
• Trading Volumes: Stocks of larger and better-known 
companies generally have high volumes because people 
regularly buy and sell them. Experts recommend sticking to such 
stocks for intraday trades. 
• Price levels: An ideal practice is to set price targets and stop 
losses for both types of trades. But they are more important for 
intraday trades. 
Source: www.kotaksecurities.com
INVESTMENT ANALYSIS
• Intraday trades are usually based on technical indicators. These 
indicate a stock’s expected short-term price movements based 
on its historical price chart. 
• With delivery-based trading and investing, experts suggest 
investing in companies with strong long-term prospects. This 
requires an in-depth analysis of the company’s business 
environment and internal operations. 
Source: www.kotaksecurities.com
WHICH ONE SHOULD YOU GO FOR?
• Intraday trading lures an individual, but it isn't everyone’s cup of 
tea. As highlighted above, an individual is required to monitor 
his/her position minute by minute.
• Thus, an investor who is not very comfortable with such an 
approach should ideally stay away from the intraday approach.
Source: groww.in