Glossary
What is Delivery Trading? Meaning, Example & Why It Matters
Buying shares and holding them in your demat account beyond the trading day, for days, months or years.
Delivery trading, sometimes called cash and carry, means buying shares and taking delivery of them into your demat account. You pay the full value of the shares and can hold them for as long as you like. This is how most long-term investors buy stocks and ETFs.
Why Delivery Trading matters to you
Costs for delivery trades are typically lower per order than for active trading, and many brokers charge no brokerage for equity delivery. However, statutory charges such as STT and stamp duty are often higher in percentage terms for delivery than for intraday. When you sell, DP charges usually apply as shares leave your demat account.
Delivery trading avoids the pressure of closing positions the same day, and you are not exposed to forced square-off. You also become a shareholder, entitled to dividends and corporate actions like bonuses and splits. Risk still exists, since share prices can fall and stay down for long periods.
Practical tip: if you invest in delivery, compare brokers on DP charges and AMC, not just brokerage, because those are the costs you will see most often. Holding period also affects capital gains tax, so keep records of purchase dates.
Example: Illustrative only: if you buy 100 shares at ₹500 each, you pay about ₹50,000 plus charges, and the shares appear in your demat account after settlement. When you later sell, a DP charge applies for that stock on the day of sale.
See it in rupees: every charge and tax on a real trade, at every broker. Open the brokerage calculator
Related terms
- GlossaryIntraday Trading
Buying and selling the same security within one trading day, so no shares are delivered to your demat account.
- GlossaryDP Charges
Fees charged by the depository and your depository participant when securities are debited from your demat account.
- GlossaryT+1 Settlement
A settlement cycle where trades are completed, with shares and money exchanged, one working day after the trade date.
- GlossaryDemat Account
An electronic account that holds your shares, ETFs, bonds and other securities in dematerialised form.
Frequently asked questions
Is delivery trading cheaper than intraday?
Brokerage is often lower or zero for delivery, but STT and stamp duty rates can be higher. The total depends on your trade size and frequency.
When do I get my shares after buying?
Under T+1 settlement, shares are usually credited to your demat account one working day after the trade.
Can I sell shares the day after buying?
Yes, you can usually sell shares bought earlier, often even before they show in your demat account, under BTST arrangements. Rules and risks vary by broker.