Delivery-Based Trading
Buying shares with the intention of taking them into a demat account, rather than squaring off within the session.
How it is identified
Test: the position survives the session close and settles into the buyer's demat account on T+1
Unit
qualitative
In depth
Delivery trades require the full purchase value rather than a margin, settle into the demat account on a T+1 basis in India, and carry the higher securities transaction tax rate. The advantage is that there is no forced exit: the position cannot be auto-squared by a broker's risk system on a temporary adverse move. Delivery holdings also make you a shareholder of record, so dividends, bonuses and voting rights attach to them. In tax terms these are capital gains rather than speculative business income, which is a materially different treatment.
Worked example
A ₹2,00,000 delivery purchase requires the full ₹2,00,000 up front and pays STT of 0.1% on both legs, or ₹200 on the buy. The same exposure taken intraday might need ₹40,000 of margin, and would have to be closed by 15:20.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Delivery-Based Trading” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.