As the name suggests within a day, It’s just like how a small milkman purchases the milk and sells it off the same day, he can’t keep the milk with him, all of it needs to get sold the same day. Day trading means intraday trading, Day trading has a facility where the investor can invest into the shares on the same day and if he sees profit in that share on the same date he can sell it on the same day. Intraday is when you buy a lot of shares of a company. These are fixed lots of 500 or 750 or any particular number of shares. You have to sell them the same day.
The benefit you get here is that unlike delivery you have to pay only a margin money say 15% or 20% (different as per the company) of the total value of shares. When you sell the lot you get a profit of total gain per share multiplied by the total number of shares.
Difference Between Intraday And Delivery
The Basic Difference of Intraday As Compared To Delivery Is :-
- The brokerage in the case of intraday is very much small in comparison to the delivery.
- The purchased shares are stored in your demat account.
- risk is less in trading comparing to delivery.
- payment is only 20% to 40% of the share price in trading.
- commission is much low as compared to delivery, for bulk buyer of shares in trading is best.
Its like purchasing vegetables for your house. Where you buy them and keep them in fridge for few days. delivery means you buy today and sell tomorrow or anytime after today. Delivery means the investor can keep the shares for a longer period, provided he has not take exposure, and if there is exposure he will have to set it off the same day. In case of delivery, you have to pay the full value of the shares and the shares get credited to your account. You can keep these shares for as long as you like.
The Basic Difference of Delivery As Compared To Intraday Is :-
- The brokerage charges will be more for delivery.
- Risk is more in the case of delivery as compared to intraday.
- full payment is paid in the case of delivery.
- buying and selling of shares takes place according to our wish whenever we want.
- commission is much high in the case of delivery, so for those who wait to get maximum profit in limited no of shares, the delivery is best. But you need to be careful while investing in it.