Intraday v/s delivery trading
Confused about which trading strategy you should apply to earn profit in share market. We are here to make it easy for you. These are trading strategies that you need to understand before starting your investment in share market. Basically the difference between intraday trading and delivery trading is of time. INTRADAY TRADING as the word says buying and selling shares on the same day. While DELIVERY TRADING is buying and selling of shares does not take place on the same day. Lets us learn these terms with the help of some example:
I purchased reliance share on 29 May and sold it on the same day it is called INTRADAY TRADING.
But if I purchased reliance share on 29 May and didn’t sell those shares, on the same day it is called DELIVERY TRADING.
Let us see the benefits and disadvantages of intraday trading and delivery trading.
BENEFITS OF INTRADAY TRADING
- NO CAPITAL BLOCKED- As you know intraday trading means buying and selling shares in same trading session, so the most important benefit of INTRADAY TRADING is that your capital does not get blocked. You can withdraw your money from your account the day you wish.
- LOW INVESTMENT NOT A PROBLEM- If you are having shortage of investment, intraday trading is best for you. With the help of limit given by your broker, you can buy shares of more than your investment.
- PROFIT- You can boost your investment within a short period of time.
BENEFITS OF DELIVERY TRADING
- BIG INVESTORS- DELIVERY TRADING is best for investors with good amount of investment.
- NO HURRY TO BOOK POSITION- If you are suffering loss on your shares you can book profit on them by holding it until your share price gives you profit. You don’t need to book loss on the same day.
- EARN DIVIDEND- If you hold a share for long period of time you also get dividend on that share.
DISADVANTAGES OF INTRADAY
- BEGINNERS END UP LOSING MONEY- Beginners try their hands without getting deep knowledge, investment should be made after understanding where are you investing.
- CLOSE MONITORING REQUIRED- When investing in intraday you need to keep an eye on your ongoing position as market keeps on fluctuating.
- NO SPECIAL BENEFITS OF DIVIDENDS- When you hold a share for a short period of time you are not entitled to any perks or dividends as a shareholder of the company.
DISADVANTAGES OF DELIVERY TRADING
- INVESTMENT GETS BLOCKED- In delivery trading you lock your money for a long period.
- SUITABLE FOR INVESTORS WITH HIGH INVESTMENT- If you invest a low amount you can only buy limited shares, you cannot make use of limits.
- TIME FRAME- For good profit, you have to wait too long as you cannot catch daily movement of share.
Now you need to analyze what you want to do an intraday trading or delivery trading.