What is delivery trading?

Delivery trading is a type of trading in the stock market where investors buy and sell stocks with the intention of taking physical delivery of the stocks they have purchased. In this type of trading, the stocks are held for a longer period of time, usually ranging from a few weeks to several months or even years, and the investors aim to profit from the appreciation in the value of the stocks.

When an investor buys stocks through delivery trading, they pay the full price of the stocks and take physical possession of the shares. They then hold the shares in their demat account, and can choose to sell them at any time in the future. In contrast, in intraday trading or day trading, investors buy and sell stocks on the same day without taking physical delivery of the shares.

Delivery trading is considered a relatively safer way of investing in the stock market as it allows investors to take a long-term view of the market and benefit from the growth potential of the stocks. However, it also involves a higher degree of risk compared to other investment options such as fixed deposits, as the value of the stocks can fluctuate over time.