Here we try and explain the difference between intraday trading and delivery trading:
Difference 1 - the time frame
One of the biggest Differences Between Intra Day Trading And Delivery Trading is the
time span.
In intraday trading, as the name suggests investors will invest only for a few hours. What
this means is that they tend to square off their position after a few hours and definitely on
the same day.
Let us cite this with an example. Let us say that you bought shares of Punjab National
bank at 10.00 am and wish to square anytime during the day, it would be an intraday.
On the other hand in delivery based trading, you buy the stock to hold for a long period of
time.
Difference 2 - Dividends, rights, bonus shares
In intraday trading, since you never hold the shares, you do not get dividends, rights and
bonus shares, In fact, you do not get any corporate benefits.
On the other hand, those who take delivery of shares tend to get all of the above benefits
listed.
Difference 3 - Shares in the DP account
One of the other Differences between Intra Day Trading And Delivery Trading is that in the
case of intraday trading, you would never have shares in your DP account. In the case of
delivery trading, the shares would always be reflected in your DP account.
Difference 4 - Objectives are different
In both cases, the objectives are totally different from each other. In the case of intraday
trading, you wish to make quick money in a single day, while in the case of delivery based
trading, you want to hold the shares for a longer time frame.
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