What is Delivery trading?

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Opposite to intraday trading in delivery trading . If you have placed order as CNC, cash and carry order type or delivery order type, than you first require full margin to place the order . So if you are buying let say HDFC bank shares, trading at 800 per share. You have to have the full 800 to place the order.

Once you have placed the order, you can still sell the shares before the markets gets closed, however this time RMS will recognize your order type as delivery and will not square-off your open position. This shares will get deliver to your Demat account. You can keep those shares as long as you want or sell it whenever you feel so its totally up to you. Below image tell us in brief about difference between intraday and delivery based trading.

 

What is Intraday trading and how it works in stock market?