Delivery trading and intraday trading are not just different time frames — they are fundamentally different activities requiring different skills, capital, risk tolerance, and time commitment. Choosing the right one for your situation is the first and most important decision you make as an Indian market participant.
Delivery Trading — What It Is
Delivery trading (also called CNC — Cash and Carry) means buying shares and holding them in your Demat account beyond the same trading day. You actually own the shares — they are credited to your Demat account on T+1 (next working day). You can hold them for days, weeks, months, or years.
- Capital required: Full value of shares — no leverage. Buying ₹1,00,000 worth of shares requires ₹1,00,000 in your account.
- Brokerage: Zero for most major brokers (Zerodha, Groww, Upstox) for delivery trades.
- Taxes: Short-term capital gains (STCG) at 20% for shares held less than 12 months. Long-term capital gains (LTCG) at 12.5% for shares held more than 12 months (above ₹1.25 lakh exemption).
- STT: Securities Transaction Tax of 0.1% on buy + sell for delivery trades.
Intraday Trading (MIS) — What It Is
Intraday trading (MIS — Margin Intraday Square-off) means buying and selling within the same trading session. All positions are closed before market close (or automatically squared off by the broker if you don't close). You never actually own the shares overnight.
- Leverage: Brokers offer 5–20× intraday margin on cash stocks. Buying ₹1,00,000 worth of shares may only require ₹10,000–₹20,000. This amplifies both profits AND losses.
- Brokerage: ₹20 per order or 0.03% (whichever is lower) at most discount brokers.
- Taxes: Intraday trading profits are treated as speculative business income — taxed at your income tax slab rate (up to 30%).
- STT: Lower STT of 0.025% only on the sell side for intraday.
- Auto square-off: If you forget to close an intraday position, your broker automatically closes it typically at 3:15–3:20 PM at whatever market price is available — which may be unfavourable.
Delivery vs Intraday — Complete Comparison
| Delivery (CNC) | Intraday (MIS) | |
|---|---|---|
| Holding period | 1 day to years | Same day — close before 3:20 PM |
| Capital required | Full value | 5–20% of value (leveraged) |
| Risk | Limited to amount invested | Amplified by leverage — can lose more than invested if stop not used |
| Time commitment | Low — check weekly or monthly | High — must monitor positions all day |
| Skill required | Fundamental + technical analysis | Price action, intraday patterns, discipline |
| Tax rate | STCG 20% or LTCG 12.5% | Speculative income — slab rate up to 30% |
| Suitable for | Salaried professionals, long-term investors | Active traders, those who can monitor markets |
F&O Trading — A Third Category
Beyond delivery and intraday stock trading, the F&O (Futures and Options) segment on NSE is a separate category entirely. Nifty futures, Bank Nifty options, and stock futures and options have their own margin requirements, settlement rules, and tax treatment (non-speculative business income, taxed at slab rate).
If you have a full-time job and cannot watch markets all day — delivery investing is your path. Start with a Nifty 50 index fund SIP, then add individual delivery trades as you learn. If you have time to monitor markets, can handle emotional volatility, and have capital specifically for trading — intraday is learnable, but requires structured training and a proven system. Most beginners should start with delivery before attempting intraday. Read next: What Is F&O? Futures and Options Explained Simply.