What is Delivery in Stock Market?
What is Delivery in Stock Market? A Beginner's Guide
Introduction
Ever bought something online and waited a few days for it to arrive at your doorstep? That’s delivery. The same idea applies to the stock market — just with stocks instead of shoes. If you’ve ever wondered what is delivery in stock market, you’re not alone. Many beginners get confused by this term, thinking it’s complicated or technical. But don’t worry — we’ll break it down for you in plain, simple English.
This article will walk you through everything you need to know about stock delivery, how it differs from intraday trading, and why it matters. We’ll also give you a sneak peek into the world of algo trading platforms in India and help you explore the best algo trading software in India.
Learn what is delivery in stock market, its importance, and how it works. Explore algo trading platforms in India and the best algo trading software in India.
Understanding Stock Market Delivery
Delivery in the stock market simply means buying shares and holding them in your Demat account for more than one day. It’s like owning a piece of a company for real, not just for a few hours. You're not just borrowing or betting on the price — you’re actually taking ownership of the shares.
How Does Delivery Work in the Stock Market?
When you place a delivery order, the shares are credited to your Demat account after T+2 days (trade day + 2 working days). For example, if you buy shares on Monday, they’ll be delivered to you by Wednesday (assuming no holidays in between).
Delivery vs. Intraday Trading: What's the Difference?
Delivery involves real ownership, while intraday trading is more like a short-term bet on price movement.
Why Choose Delivery Over Intraday?
Would you rather rent a house or own it? Delivery trading gives you long-term benefits, including dividends, voting rights, and potential for price growth. It’s ideal for those who believe in a company’s future and want to grow wealth gradually.
Types of Delivery-Based Orders
There are a few ways to place a delivery order:
Market Order: Buy at the current market price.
Limit Order: Set your own price and wait for the match.
Stop-Loss Order: Useful for risk management.
Each type serves a purpose depending on your strategy and risk appetite.
Risks Involved in Delivery Trading
Delivery is safer than intraday, but not risk-free. The main risks include:
Market Fluctuations: Prices may fall after purchase.
Company Performance: Poor results can affect share value.
Liquidity Issues: Some stocks are hard to sell quickly.
But with research and patience, these risks can be managed effectively.
Benefits of Delivery in the Stock Market
Ownership: You’re a shareholder.
Dividends: Companies may reward you.
Long-Term Gains: Greater potential for wealth growth.
No Rush: You don’t need to sell the same day.
Think of it like planting a tree — it grows slowly, but gives you shade and fruits later.
Time Frame and Holding Period
Delivery traders can hold shares for:
Weeks
Months
Even Years
There’s no fixed limit. The idea is to buy low and sell high — no matter how long it takes.
Charges and Brokerage for Delivery
Yes, you pay brokerage and taxes. These include:
Brokerage Fee
STT (Securities Transaction Tax)
DP Charges (for holding shares)
GST, Stamp Duty, SEBI Charges
Some discount brokers in India offer zero brokerage on delivery trades, which can help you save money.
How to Place a Delivery Order Step-by-Step
Here’s a simple way to place a delivery order:
Login to your trading account.
Select the stock you want to buy.
Choose “Delivery” option.
Enter quantity and price.
Click on Buy.
Wait for T+2 days for shares to reflect in your Demat account.
It’s as easy as ordering food online — only this time, you’re ordering shares!
Role of Demat and Trading Accounts
You need two things to trade in delivery mode:
Demat Account: To hold the shares.
Trading Account: To place the buy/sell orders.
Think of the Demat account as your digital locker, and the trading account as your shopping cart.
Tips for Successful Delivery Trading
Research the company: Check fundamentals.
Buy quality stocks: Blue-chip companies are safer.
Diversify: Don’t put all eggs in one basket.
Keep an eye on news: Company or industry-related updates matter.
Set a target: Know when to exit.
Common Mistakes to Avoid
Buying on tips without research.
Overexposure to a single stock.
Ignoring fundamentals and chasing hype.
Panicking during market falls.
Frequent buying/selling, which adds to costs.
How Algo Trading Can Help Delivery Traders
Algo trading, short for algorithmic trading, uses computer programs to execute trades automatically based on predefined criteria.
For delivery traders, algos can help with:
Timing the market
Avoiding emotional decisions
Scanning multiple stocks quickly
Reducing human errors
It’s like having a smart assistant that never sleeps!
Top algo trading platforms in India
Quanttrix is emerging as one of the best algo trading software in India, offering powerful tools for both beginners and professional traders. With an intuitive interface, Quanttrix allows users to create, test, and deploy automated trading strategies without needing to write complex code. It supports real-time data, advanced analytics, and customizable algorithms, making it ideal for those who want speed and precision in their trades. Quanttrix also integrates seamlessly with major Indian brokerages, ensuring smooth execution. Whether you're trading equities, options, or futures, Quanttrix helps you make data-driven decisions with confidence and efficiency in the fast-paced stock market.
Final Thoughts on Delivery in the Stock Market
So, what did we learn?
Delivery trading isn’t rocket science. It’s just buying shares and holding them for long-term gains. If you’re someone who prefers to take it slow and steady rather than fast and risky, delivery trading could be your perfect match. Add a sprinkle of algo trading, and you’ve got a recipe for smart investing.
Remember — in the world of stocks, patience is power.
Frequently Asked Questions (FAQs)
What is delivery in stock market?
It means buying shares and actually taking ownership of them in your Demat account, usually for more than one day.
Can I sell delivery stocks the next day?
Yes, you can, as long as your broker allows BTST (Buy Today, Sell Tomorrow) orders. But be aware of risks since the shares aren’t yet credited.
Do I need a Demat account for delivery trading?
Absolutely. Without a Demat account, you can’t hold the shares. It’s like trying to park a car without a garage.
Is delivery trading safer than intraday?
Yes. While nothing in the stock market is 100% safe, delivery trading carries lower risk than intraday because you’re not racing against the clock.
Which is the best algo trading software in India?
top options include Quanttrix, Choose based on your trading goals and technical skills.
