How Is Intraday Different from Delivery Trading?


The world’s top stock market expert, Warren Buffett has now become synonymous with his big success. He first bought his stock at the age of 11 and since then, he’s worked his way to become one of the richest people in the world. However, not everyone gets so lucky in stocks, mainly because holding onto them for the longest time isn’t everyone’s cup of tea. Today, this is why there is intraday trading.

Intraday trading, or day trading as it’s popularly called, is a platform where thousands of investors can make a fortune by ‘selling and buying’ or ‘buying and selling’ stocks on the same day before the market closes. As each day opens the door to greater opportunities, it lends investors relief from worrying about the long-term impacts.

What Is the Difference between Intraday and Delivery Trading?

Most traders often get confused between intraday and delivery trading. This is solely because the share market is like a maze and it’s quite easy for a newcomer to lose track. So, if you are a beginner, you must know that there are two ways to invest in the share market: intraday trading and delivery trading.

Intraday trading meaning is simple to understand and even easier to implement. This is because the entire trading process is completed within a day, which means that all the shares have to be bought and sold on the same day. This gives investors a chance to start afresh the next day.

On the other hand, delivery trading allows investors to hold onto their shares for as long as they want. Take Warren Buffett for instance; his portfolio includes shares that were bought approximately 20-25 years ago!

Intraday meaning and its advantages

Occurring within one day, this concept of trading has become extremely popular among people around the world. Here are some of the great advantages attached to it:

– Investors are allowed to buy and sell shares without paying the full price.
– Investors are allowed to pay only a part of the price to hold the share.
– Intraday trading allows investors to sell shares even before buying them before the market closes.
– The brokerage in intraday is lesser when compared to delivery trading.
– Intraday trading helps investors around the world earn huge returns.
– Day traders can make potential profits.
– It’s less risky and allows you to do more trades.

Disadvantages of Intraday Trading

While there are a number of benefits of intraday trading, we cannot ignore are a few disadvantages that come along with it, such as:

– Fluctuations involved in intraday trading can prove to be hazardous.
– A short time span can sometimes result in heavy losses.
– Investors need to constantly monitor the market.
– Daily profits and losses can impact the investor’s mental well-being.

So, to sum up, if long-term investments suit you better and you believe in picking shares based on the intrinsic value of the company, then you’re more inclined towards delivery trading. But, if you would like to participate in intraday trading, you must be patient and disciplined. This will allow you to minimize losses and potentially increase your chances of pocketing high profits. Besides this, it is advisable to play smaller and combine your experience and skills to achieve your goals before the sun sets, and a new day awakens.

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