What is the difference between intraday and delivery trading?
Intraday Trading
Intraday trading involves buying and selling stocks within the same trading day. The objective is to profit from short-term price movements, and all positions must be squared off before the market closes.
Brokers may provide leverage (up to 5x, depending on the stock and regulations), allowing traders to take larger positions with limited capital. However, due to the short holding period and market volatility, intraday trading carries higher risk and requires continuous monitoring.
Delivery Trading:
Delivery trading involves buying stocks and holding them for a longer period, ranging from a few days to several years. In this case, the shares are credited to your demat account, making you the actual owner of the securities.
This approach is generally used for long-term investment, aiming for capital appreciation and wealth creation over time.
Summary:-
Intraday is for short-term trading and quick profits, while delivery is for long-term investing and wealth building.