Intraday vs delivery trading
In an intraday trade you buy and sell the same share on the same day, so the shares never reach your demat account. In a delivery trade you buy shares and hold them in your demat account beyond the day, for as long as you choose. They differ in how long you hold, what you pay and which risks you carry.
Intraday and Delivery side by side
| Intraday | Delivery | |
|---|---|---|
| What it is | Buying and selling the same share within one trading day | Buying shares and holding them in your demat account beyond the day |
| Do shares reach your demat account | No; the trade is closed the same day | Yes, after settlement |
| How long you hold | Within the day | As long as you choose, days to years |
| If you do not close it | The broker usually closes it near the end of the day | Nothing happens; you simply keep the shares |
| Overnight risk | None, since nothing is held overnight | Yes, news after the market closes can move the price |
| Leverage | Brokers often offer margin on intraday positions, which raises both gains and losses | Usually you pay for the shares in full |
| Charges | Paid on every trade, so frequent trading must earn enough to cover them | Charges and taxes differ; check your broker's schedule |
What changes in the account
A confirmation message only means your order was accepted. In a delivery trade, settlement then verifies and transfers real ownership, and the shares sit in your demat account. In an intraday trade the position is squared off the same day, so only the difference between the buy and sell price, less charges, counts.
Why the risks differ
An intraday trader is not exposed to news that arrives overnight, but works against the clock and often with leverage. Studies of individual traders by SEBI have found that most lose money over time. A delivery investor carries the overnight risk but is not forced to sell at the end of the day.
Costs
Brokerage, taxes and other charges are paid on each trade, whatever its result. Because an intraday trader makes many trades, the charges add up and have to be covered before there is any profit. The rates are set by the government, the regulator and the exchanges and can change, so check the current schedule.
Which one is meant for what
They are different activities, not stages of the same one. Maetis teaches how to think about risk and does not tell anyone to trade. The useful question is whether you can explain why you are in a trade and what you will do if it goes wrong.
The same ₹5 price move (hypothetical numbers)
Suppose you buy 10 shares at ₹500. In delivery, you hold them and they appear in your demat account after settlement. If you sell a week later at ₹505, you gain ₹50 before charges.
In an intraday trade, you buy the 10 shares at ₹500 and sell them the same afternoon at ₹505. They never reach your demat account. Your gain is the same ₹50 before charges, but charges are paid on both the buy and the sell, and a fall to ₹495 would have meant a ₹50 loss with no option to wait.
Common questions
- What is the difference between intraday and delivery?
- Intraday trades are opened and closed on the same day and never settle into your demat account. Delivery trades are held in your demat account.
- What happens if I do not sell an intraday trade?
- The broker will usually close it near the end of the day at the price then.
- Is intraday riskier than delivery?
- Usually it is, because of leverage, the time limit and the charges on many trades. Both carry risk.
- Do I need a demat account for intraday?
- You need a trading account. Since the shares are not delivered, the demat account is not used for the trade itself.
Related terms
This page compares ideas and does not recommend either one. Maetis does not give investment, tax or legal advice.