If you’re entering the stock market for the first time, you’ll often come across two common terms — Intraday Trading and Delivery Trading. These are the two main ways people trade shares in the stock market. But what’s the difference? Which one is more profitable? And which one should you choose?
In this guide, we’ll simplify everything for you — so you’ll not only understand the difference between intraday and delivery trading but also know which one fits your trading style. Let’s begin your trading journey the right way.
⚡ What is Intraday Trading?
Intraday trading refers to buying and selling a stock on the same day — during market hours (9:15 AM to 3:30 PM in India). You don’t keep the shares after the market closes. The goal is to make profits from small movements in stock prices within a single day.
This type of trading is best for active traders who want to make quick profits and are comfortable watching charts, news, and price actions in real time. It requires strong technical skills, fast decisions, and risk-taking ability.
📌 Example:
You buy 100 shares of Reliance at ₹2,400 at 10:00 AM.
You sell them at ₹2,420 at 1:00 PM.
✅ Profit = ₹2,000
📦 What is Delivery Trading?
Delivery trading means buying shares and holding them in your Demat account for more than one day. You become the actual owner of the shares and can sell them any time in the future — after a few days, months, or even years.
This type of trading is ideal for long-term investors who believe in the growth of the company. Delivery trading allows you to earn not just through share price increase but also through dividends, bonuses, and stock splits. It is safer and doesn’t require you to monitor the market daily.
📌 Example:
You buy 50 shares of HDFC Bank at ₹1,500.
Hold them for 6 months.
Sell at ₹1,800.
✅ Profit = ₹15,000
🆚 Key Differences: Intraday vs Delivery
To understand better, let’s compare Intraday Trading vs Delivery Trading side by side.
| 🔍 Factor | ⚡ Intraday Trading | 📦 Delivery Trading |
|---|---|---|
| ⏱️ Time | Buy and sell on the same day | Hold for days, weeks, or years |
| 📥 Ownership | No, you don’t own the stock | Yes, stock is in your Demat |
| 💰 Capital | Less required due to margin | Full amount needed |
| 💹 Risk | High due to fast movements | Low to moderate risk |
| 🧾 Tax Type | Business income | Capital gains |
| 📈 Profit Goal | Small daily profits | Long-term wealth growth |
| 🧠 Knowledge Needed | Technical analysis & fast decision-making | Fundamental analysis & patience |
✅ Pros of Intraday Trading
Intraday trading has some great advantages if done with discipline:
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Quick Profits: You can earn in a few hours by correctly predicting short-term price movements.
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Low Capital Needed: Brokers give you margin or leverage, so even small amounts can let you trade big.
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Profit in Any Market: You can earn even in falling markets by short selling.
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Lower Brokerage: Since positions are closed the same day, brokerage is usually very low.
⚠️ Risks of Intraday Trading
Intraday trading also comes with serious risks that should not be ignored:
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High Volatility Risk: Markets can change suddenly due to news or events, leading to losses.
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Emotional Pressure: Fast decisions under stress may lead to panic selling or buying.
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Loss of Capital: Without a stop-loss, even a small trade can wipe out your entire amount.
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Need for Constant Monitoring: You must track charts and price changes constantly during the day.
✅ Pros of Delivery Trading
Delivery trading is safer and more flexible, especially for long-term investors:
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Full Ownership: You actually own the shares and can hold them as long as you like.
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Earn Dividends & Bonuses: Companies may reward shareholders with bonuses and dividends.
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No Time Limit: You’re not forced to sell at any particular time.
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Less Stressful: No need to check the market every day; just check your portfolio occasionally.
⚠️ Risks of Delivery Trading
Though safer, delivery trading also comes with its own set of risks:
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Higher Investment Needed: You have to pay full price for each stock, no margin available.
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Brokerage & Demat Charges: Holding charges and transaction fees can affect long-term gains.
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Market Crash Risk: If the market falls badly, your investment value may drop for months.
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Less Liquidity: You may not be able to sell quickly during major market crashes.
🧮 Brokerage and Charges
Understanding cost is important when comparing Intraday Trading vs Delivery Trading.
| Type | Intraday | Delivery |
|---|---|---|
| 💼 Brokerage | Very low (0.03% or ₹10 per trade) | Higher (0.5% or ₹20 per trade) |
| 🔁 Margin Facility | Yes, up to 10x | No |
| 🧾 Demat Charges | Not applicable | Applicable |
| ⏳ Holding Limit | Must close by 3:30 PM | No limit |
💡 Tip: Use brokers like Zerodha, Groww, or Upstox for cost-efficient trading.
🧾 Tax Rules: Intraday vs Delivery
Taxes are different for both styles of trading:
📌 Intraday Trading
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Treated as Business Income
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Taxed as per your income tax slab
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File ITR-3 (business return)
📌 Delivery Trading
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Short-Term Capital Gains (less than 1 year) – 15% flat tax
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Long-Term Capital Gains (more than 1 year) – 10% tax on gains over ₹1 lakh
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File ITR-2
🎯 Which is Better?
Still confused between Intraday Trading vs Delivery Trading?
📌 Choose Intraday if:
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You have time to watch the market
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You enjoy fast-paced trading
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You have good technical skills and discipline
📌 Choose Delivery if:
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You’re a beginner
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You want to build long-term wealth
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You don’t want to check prices every day
There’s no right or wrong — just choose what fits your style and comfort.
💡 Tips for Beginners
🔹 Intraday Trading Tips:
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Always use a stop-loss to manage your loss
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Don’t trade based on emotions — follow your strategy
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Start small, trade only 1–2 stocks at first
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Use indicators like RSI, MACD, and candlestick charts
🔹 Delivery Trading Tips:
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Invest only in fundamentally strong companies
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Be patient, and don’t sell in panic
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Diversify across sectors (banks, IT, FMCG, etc.)
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Use SIP method if investing regularly
🔗 External Resources
🌐 NSE Learning Portal – Basics of Market
🌐 SEBI Investor Education
❓ FAQs – Intraday Trading vs Delivery Trading
Q1: Can I convert intraday to delivery?
✅ Yes, if done before 3:15 PM and full funds are available in your account.
Q2: Is intraday trading legal in India?
✅ Yes, intraday trading is 100% legal and regulated by SEBI.
Q3: Can I use margin in delivery trading?
❌ No. You need the full amount to buy shares for delivery.
Q4: Which one is safer – intraday or delivery?
📦 Delivery trading is safer for beginners. Intraday involves high risk.
Q5: Can intraday trading make you rich?
⚠️ It can, but it’s not easy. Many traders lose money. It needs skill, control, and a plan.
🏁 Conclusion
Intraday Trading vs Delivery Tradingboth are useful tools in the share market. Your success depends on how well you understand your own risk level, time availability, and financial goals.
🔍 Want quick profits and can handle risk? Try intraday trading with strict discipline.
📈 Prefer slow but stable growth? Go for delivery trading and invest smartly in good companies.
Whatever you choose, remember: the stock market rewards knowledge, not luck. 📚💰
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