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Jun 28, 2009

What is the meaning of Delivery Trading

Delivery Trading is a very secure Trading. If we buy shares today and sell them after 1 day then the type of trading is called as Delivery Trading. Share you bought in Delivery option can be sold at any time before Market closes. I.e up to 3.30 pm. If you buy shares With the Delivery option, It will be taken as Delivery Trade only if you sell your shares after 1 day ( may be next day or after a month or after a year, 3 years when ever you sell after 1 day it is called delivery Trading) In Delivery Trading , it will also allow you to sell your shares with in 1 day also (may be with in 1 sec, 1 hour, Before market closes). But if you sell the shares which were bought with Delivery option with in 1 day(may be with in 1 sec, 1 hour, Before market close) would not be taken as a Delivery Trading and would be taken as Intraday Trading. All the brokerages for such Trade will be charged as per Intraday brokerage charges (0.02% to 0.04%). So here you have to understand that if you buy Shares with Delivery Trading option you can also sell it in Intraday.

The main advantage of Delivery Trading is that, the Loss of Fear of Money is very less when compared with Intraday Trading. you can just be cool if you buy in Delivery bcoz you no need to sell on the same day with the loss, even if the market price of your share value reduces. you can wait for more days to get your price.

The main disadvantage of Delivery Trading is that, the brokerage charged by Share Broking Companies is very high for Delivery Trading. It is around 0.2% to 0.4%. and in this type of Trade, your profit will increase slowly.

So my suggestion to this blog readers is that, always Trading in Delivery is safer than Trading in Intraday.

3 comments:

Anonymous said...

Thanks for the info.

Unknown said...

Thanks

Unknown said...

Helpful advice. Thanks

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