An investing style where bought stocks are held for more than a day, transferred into a demat account for long-term hold.
Delivery trading is a stock investing style where you purchase shares and hold them for more than one trading day. These shares are physically delivered to your Demat (dematerialized) account, representing actual fractional ownership of the company.
When you buy shares via delivery, you pay 100% of the trade value (no broker leverage is allowed). The exchange settles the trade on a T+1 basis, meaning the shares are officially transferred to your NSDL or CDSL demat account on the next working day. You can hold these shares for days, months, or decades until you decide to sell.
Delivery trading is the foundation of wealth creation and long-term investing. As a delivery investor, you are entitled to company benefits like stock dividends, bonus shares, stock splits, and voting rights. It has significantly lower pressure than day trading, making it the safest equity strategy for long-term compounding.
You buy 50 shares of HDFC Bank at ₹1,500 for delivery. You pay the full ₹75,000. The next day, the shares are stored in your CDSL demat account. Two years later, the stock rises to ₹2,000. You decide to sell the shares, pocketing a ₹25,000 capital gain plus any dividends paid during those two years.
Many modern discount brokers offer ₹0 brokerage on delivery trades. However, government charges like STT (Securities Transaction Tax), GST, and SEBI turnover fees still apply to all delivery transactions.
Practice trading stocks with live NSE/BSE market prices and ₹10,00,000 in virtual capital on Arthhwise.
Download Free Android AppSimulated trading that allows investors to practice buying and selling securities without risking real money.
A style of trading where securities are bought and sold within the same trading day to capture short-term price movements.
The projected price level of a stock as stated by an analyst or trader, representing the exit point of a profitable trade.