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Intraday vs delivery trading: Unravel the key differences and similarities


Investing in the stock market has various approaches. Intraday trading and delivery trading are two diverse approaches to engaging in the financial market with their respective advantages and disadvantages. Intraday Trading is done by studying short-term price movements whereas Delivery Trading is executed by those who believe in wealth accumulation and long-term investments.

You must approach these distinct strategies after understanding what is Intraday Trading and what is Delivery Trading, which we will cover in this article. 

What is intraday trading?

Also known as Day Trading, Intraday trading is when an investor purchases and sells shares within the same day. 

Intraday trading enables investors to purchase and sell an equal number of stocks from a company on the same day before the market closes. The aim is to earn profit from fluctuations in the market.

In the case of Intraday trading, risk arises from heightened volatility and rapid price fluctuations in a market in a single day. Since these fluctuations have to be predicted in a narrow time frame, traders are at a high. However, returns can be promising if traders can capitalise on minute movements by leveraging margins and employing strategies.

Pros of Intraday Trading

  • Traders can make quick profits in a single day.
  • There are no overnight risks involved.
  • Traders can control larger positions with limited capital.
  • Traders can enter and exit faster while maintaining liquidity without facing any major price impact.
  • Stocks of companies need not be studied as only the daily performance matters.

Cons of Intraday Trading

  • If not managed properly, intraday trading can be highly volatile and risky.
  • This is a time-consuming process as traders need to monitor the fluctuations closely.
  • Costs of transactions can be high because of brokerage fees and spreads.
  • Consistently identifying profitable deals can be challenging as continuous technical analysis is exhausting.
  • Traders are exposed to limited opportunities as trading hours are restricted.

What is Delivery Trading?

The process of investing in stocks for a longer duration is Delivery Trading. In this process, only one leg of the transaction happens in a day. Therefore, you either sell or buy a share in a single day and hold on to it for a week, a month, a decade and so on.

This is a great way to invest and hold and build wealth in the long run. Compared to intraday, delivery trading has a lower risk. In the case of Delivery Trading, risks are based on global economic factors, company performance and market volatility. Short-term losses can be mitigated as investors depend on multiple factors and calculate the gains accordingly.

Pros of Delivery Trading

  • Delivery trading allows long-term wealth creation as investors are not bound by time.
  • Investors have to pay lower brokerage charges as the number of transactions is limited.
  • Investors can hold on to stocks for as long as they want.
  • Investors are a part of the decision-making process of a company as delivery of shares is taken in their demat account.

Cons of Delivery Trading

  • Long exposure to market fluctuations can lead to capital loss if the market is not favourable.
  • Holding on to stocks in delivery trading may lead to limited liquidity.
  • Investors have to depend on the condition of the market and trade accordingly which can lead to loss.

Intraday vs Delivery Trading

Both trading practices have their respective earning potentials. However, here is a detailed analysis to better understand Intraday vs Delivery Trading for all the budding investors.

CategoryDelivery TradingIntraday Trading
Time LimitInvestors can hold on to their stocks for as long as they want.Traders have to sell their shares before the market closes at the end of the day.
Risk FactorSince investors are not bound by time, chances of running into a loss are significantly lessened.Traders have to sell their shares at the end of the day irrespective of whether they are incurring losses or earning profits.
Purpose ServedInvestors might not experience as rapid gains as Intraday trading but can build wealth over a period of time.Traders can hone their trading skills and strengthen their risk-taking power. 
Level of LiquidityIf you want your security to stay consolidated and wish to park your funds, opting for Delivery Trading is better.Liquidity levels are higher in intraday trading as the sale and purchase of shares are done on the same day. 
Purpose of Investment Wealth accumulation can be better done with Delivery trading.Short-term profit maximisation can be achieved faster by indulging in Intraday trading.
Costs InvolvedApart from the brokerage, investors incur statutory fees like securities transaction tax (STT) and Goods and Services Tax (GST). Other than these, additional charges like exchange fees, SEBI turnover fees and stamp duties are also levied.Brokerage in this case ranges from 5 to 10 basis points reflecting competitive pressures. Costs are further affected by volatility, bid-ask spreads, time constraints and so on.


Intraday Trading and Delivery Trading cater to people who have specific goals. While the former focuses on short-term returns, the latter trading method focuses on wealth accumulation and consolidation. Therefore, both approaches are appropriate and correct depending on your investment objectives, risk tolerance and preferences. 

For more information on Intraday vs Delivery Trading, visit StockGro.


Is Intraday Trading riskier than Delivery Trading?

Yes. However, the level of risk in either of the trading methods depends on a person’s level of knowledge, the purpose of investment, the state of the global economy and the amount invested as well as the return expected.

Which is a more expensive trading option?

Mostly Intraday turns out to be more expensive than Delivery Trading because of high brokerage charges. Since multiple trades are executed daily, costs tend to add up quickly.

Can Intraday shares get converted into Delivery shares?

Yes. You can convert your Intraday shares into Delivery shares provided the trader or the investor holds the position beyond the trading day and does not sell the shares before the market shuts. However, based on the order type, it may not be possible as intraday orders get executed automatically if not closed at the end of the trading day.

hat time is ideal for Intraday Trading?

Intraday traders stick to the 5-minute, 15-minute and 60-minute charts to study and analyse stock trends. Each of the previously stated time frames offers a different perspective based on which decisions can be made.

Is there any cap on transactions for Intraday Trading in a day?

No. There is no particular number of shares that have to be bought or sold in a day. However, traders must have the required capital or amount in the trading account and are bound by that.

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