Intraday trading requires you to square off your position on the same day without physically delivering the securities. Equity delivery works the opposite way. So, what is equity delivery? Equity delivery meaning is getting physical delivery of shares in your Demat account. After you take delivery of the purchased shares, it is up to you whether you want to hold them in the Demat account or sell them. You are free to hold the stocks as long as you wish. Equity delivery trading is about long-term wealth creation. Moreover, margin is not available in equity trading. You must have the entire funds in your account to purchase the securities. However, some brokers provide the margin benefit in delivery trading through Margin Trade Financing.
Delivery trading offers numerous benefits, as mentioned below:
When you buy shares under equity delivery as an order type, the brokerage firm deducts a specific amount as a brokerage charge. Some brokers might provide discounted charges through varying subscription models.
Do thorough research and understand what is equity delivery, and what is equity delivery charges before making an investment decision. With delivery trading, you can hold the securities for the long term. Therefore, purchase the securities when they seem to trade at a relatively lower price and wait for the ideal time to sell them to make maximum profits. Look for free equity delivery brokers to save on charges.
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