HomeGreater Than Icon
Knowledge BaseGreater Than Icon
Intraday tradingGreater Than Icon
Intraday VS Delivery Trading: Which One to Choose?

Intraday VS Delivery Trading: Which One to Choose?

  • Calender19 Dec 2025
  • user By: BlinkX Research Team
  • FbkFbkTwitterTelegram

    • Intraday trading means buying and selling stocks on the same day. Delivery trading means the investor can hold the stocks for many days or even longer. The main difference between intraday and delivery trading is how long the shares are kept and how much risk the investor can take. This guide explains the difference between intraday and delivery trading in detail.  

    Key Differences Between Intraday and Delivery Trading 

    Here are some of the basic differences between delivery vs intraday trading in the stock market.  

    Aspects 

    Intraday Trading 

    Delivery Trading 

    Definition The trader buys and sells stocks on the same day. The trader buys the stock and sells it after many days or months. 
    Timeframe It happens within the same day. The shares are held for more than one day. 
    Settlement The trade starts and ends on the same day. Shares move to the trader’s Demat account. 
    Risk and Return It has high risk and prices change quickly. It usually has lower risk and may give slow, long-term growth. 
    Transactional Charge The broker may charge a lower fee because many trades can happen in one day. The fee may be higher because there are fewer trades depending on brokers. 
    Margin Traders can use margin to trade with more funds than they have. No margin is allowed; traders use only their own money. 
    Tax Potential gains are taxed as per the trader’s income slab. Capital gains tax applies and tends to be lower. 
    Overnight Risk There is no overnight risk because the trade ends the same day. Involves overnight risk because the stock is held for days. 
    Stress Level It can be stressful because prices move fast. Relatively less stressful because traders hold assets longer. 
    Liquidity It needs high liquidity to buy and sell quickly. High liquidity is not needed because holding time is longer. 
    Monitoring It needs constant monitoring during market hours. It doesn’t require daily monitoring; investors can check at regular intervals. 
    Skill Needed It needs quick thinking and fast decisions. It needs patience and basic research skills. 

    Table of Content

    1. Key Differences Between Intraday and Delivery Trading 
    2. Advantages of Intraday Trading & Disadvantages of Intraday Trading 
    3.  Which is Better for You? 
    4. Important Things to Keep in Mind 
    5. Conclusion 

    Advantages of Intraday Trading & Disadvantages of Intraday Trading 

    Having understood the delivery vs intraday trading differences, let’s understand the advantages and disadvantages of intraday trading. 

    Advantages of Intraday Disadvantages of Intraday 
    Intraday trading allows investors to use their capital to make small investments in stocks, potentially leading to higher profits with a smaller investment. The trader could lose the position the next day if the stock moves in the opposite direction, which can cause losses that cannot be avoided. 
    Intraday traders can gain from falling stock prices by selling shares they do not possess. They can sell stock early in the day without purchasing it beforehand, then buy it back at a lower price to make a profit. Intraday trading involves not holding onto stocks during important dates such as dividend record days, bonuses, rights issues, or stock splits. Hence, traders don’t get these benefits. 
    By engaging in intraday trading, traders can detect developing market trends in their initial stages. Continuous monitoring is crucial in intraday trading. Traders must closely observe minute-by-minute market fluctuations, allowing minimal downtime. This process demands considerable time and attention. 

     Which is Better for You? 

    Here are a few simple points to help understand which trading strategy may suit an investor: 

    • Long-term investments using the delivery trading strategy may have the potential to provide returns over a time period. 
    • Delivery trading may be suitable for individuals lacking time for regular evaluations required in intraday trading. 
    • Intraday trading may be suitable for a trader who has the required time and skill for technical analysis and can interpret charts at a fast pace. 

    Investors should opt for a trading strategy based on their investment objectives, strategy and risk  appetite. Moreover, it is vital to understand how the strategies work and the risks involved to avoid losses. 

    Important Things to Keep in Mind 

    Here are some important things to keep in mind while choosing intraday vs. delivery: 

    Broking Fees 

    In intraday trading, the broking fees are usually lower, but because the trader buys and sells many times, the total cost becomes higher. In delivery trading, there are fewer trades, but the charges are higher. 

    Taxes 

    Both intraday and delivery trades have taxes. Potential gains from delivery trading are considered capital gains, either short-term or long-term, based on how long the shares were held. Intraday gains are treated as business income. 

    Strategy and Discipline 

    Intraday requires speed in decision-making, timing accuracy, and defined planning. Delivery trading involves patience, in-depth research, and a long-term approach. 

    The Effect of Market Volatility 

    Because prices can significantly change in a matter of minutes, intraday trading is extremely susceptible to market volatility. Delivery trading is more concerned with long-term patterns and can be relatively less impacted by daily swings. 

    Disclaimer: All investments are subject to market risks, economic conditions, regulatory changes, and other external factors. Returns are not guaranteed and may vary based on market performance and investment tenure. Investors should assess their risk tolerance, financial objectives, and consult a qualified advisor before making any investment decisions. 

    Conclusion 

    Intraday trading means a trader buys and sells shares on the same day. Delivery trading means the trader can keep the shares for many days. The delivery vs intraday trading differs in how long the shares are held, how the trades are settled, the risk level, the brokerage charges, and how much margin is used. A stock market trading app may help traders learn about both methods, compare them, and manage their trades more easily. 

    Recent Articles

    Related Articles

    Press Release