What is Delivery Trading?
Delivery trading in the stock market refers to buying shares and holding them in your Demat account for more than one day. You can keep these shares for days, years, or even decades—depending on your financial goals.
Unlike intraday trading, where positions must be squared off the same day, delivery trading allows you to hold stocks as long as you want. This makes it a preferred approach for investors focused on long-term wealth creation.
It also differs from swing trading, where stocks are typically held for a few weeks or months to capture short to medium-term price movements. Delivery traders, on the other hand, usually invest with a longer horizon in mind.
Example of Delivery Trading
To help you understand a bit better, here’s an example.
Say you buy 50 shares of a company today at ₹200 each on Upstox. Now, instead of selling these stocks today, you hold them in your Demat account. Now here are the possibilities:
If the price goes up to ₹300 after a year, you can sell and make a profit.
During this time, you will continue to receive **dividends, bonus shares, or rights issues**. This is because you’re a shareholder of that company’s stock.
**What are the advantages of Delivery Trading **
**Hold for the long term**: With Delivery Trading, you can invest in strong companies and build your wealth
**Safer than intraday**: Lower risk compared to intraday trading. This is because you aren’t exiting the trade on the same day.
**Get shareholder benefits**: Because of the long-term stock holding, you’ll be eligible for dividends, bonus shares, and rights issues of the stock.
**No daily tracking required**: Delivery Trading is beneficial if you don’t want to monitor markets minute-by-minute.
**What are the disadvantages of Delivery Trading **
**Funds get blocked**: Since you pay the full amount upfront while buying shares, funds will be blocked till the date you decide to sell the stocks.
**Slower returns**: Unlike intraday, profits aren’t instant in delivery trading. So, you need patience for Delivery Trading.
How to Do Delivery Trading on Upstox?
Log in to your Upstox account
Select the company whose stocks you want to buy.
You can pick from our list of Today’s Gainers, 52-Week High and more
Pick the stock, analyse its details and buy
Choose regular stock and pick “Delivery” instead of “Intraday.”
Enter quantity and place order.
The shares get added to your Demat account. Now hold them as long as you like.
What are the differences between Delivery and Intraday Trading
Feature Delivery Trading Intraday Trading
Holding Period More than a day (your choice) Same day only
Ownership Shares stay in your Demat No ownership, only trade
Benefits Dividends, bonuses, rights, splits None
Risk Level Lower Higher
Funds Full payment required Margin allowed
Time Required Low (check occasionally) High (constant monitoring)
So, which one’s for you?
If you want to build long-term wealth → Delivery Trading
If you’re experienced, have time, and can track charts daily → Intraday
On Upstox, you can do both easily from one account.