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DELIVERY

WHAT ARE DELIVERY TRADES?

In delivery trades, the stocks you buy are added to your Demat account. They remain in your possession until you decide to sell them, which can be in days, weeks, months or years. You enjoy complete ownership of your stocks.

ADVANTAGES AND DISADVANTAGES OF DELIVERY TRADES

You already know the pros and cons of intraday trades. Now, let’s examine the advantages and disadvantages of delivery trading. This could help you to compare intraday trading vs delivery trading better.

ADVANTAGES OF DELIVERY TRADES

  • No Time Limit: Delivery traders are free to hold on to their stocks for as long as they like. This could range anywhere from a few days to several months. If a stock did not perform well in the short term, there is no need to book losses right away. If the stock is good, the trader could hold on for the long term and sell it when the stock rises in value
  • Limited Losses: When buying shares for delivery, traders pay the full value of the shares upfront. So, if the trade does not go as planned, their loss is limited to the purchase price. In comparison, margin traders could face massive losses if their trade moves negatively because of the margin or leverage they have taken. Delivery trades, on the other hand, are done in cash so there’s nothing to lose more than what you have invested.
  • Corporate benefits: By taking delivery of shares, traders become part-owners of the company. They become eligible to receive regular dividend and interest payments. They may also get other benefits such as bonus and rights issues.

    • DISADVANTAGES OF DELIVERY TRADES

  • Low Capital: Delivery traders miss out on the benefits of margin funding. They have to pay the full sum when buying stocks. This entire amount remains blocked until the stock can be sold and limits the potential for big returns as well. To set you up for good, here’s a quick comparison between intraday trading and delivery trading:

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    Date Instrument Short/Long Term Trend (As per Technical Indicator)

    Open Demat and Trading Account with CMCL - OPEN DEMAT AND TRADING ACCOUNT

    Why Open Demat and Trading Account with us ?

    A Demat account helps investors hold shares and securities in an electronic format. It is also commonly known as a Dematerialised account. This account helps keep track of an investor's holdings in shares, exchange-traded funds, bonds, and mutual funds in one place.You can open a Demat account without a trading account. Sometimes an investor just wants to hold the shares over the long term without selling them in the near term. Such investors can store the shares in their Demat account.Safe and Secure: It provides a secure environment for storing your securities, reducing the risk of loss, theft, or damage associated with physical certificates. Convenience: Demat accounts offer easy access to your investments, allowing you to buy, sell, or transfer securities with just a few clicks.

    An trading and demat account is most required for purchasing and selling and holding shares. However the trading and demat account could become dormant if there are sustained periods of inactivity. And no trade can be made through an dormant trading account until the reactivation process is completed.

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