Notification
No new Notification messages
Q2 FY'24-25 Results of Top Companies
Reliance, TCS, HDFC Bank & more: Explore key financial highlights from India's top quarterly results.
Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
Diwali Offer: MTF at just 9.99%
Iss Diwali, Investments Ko Karo 4X with our Trade Now, Pay Later (MTF) feature
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.

What is Equity Delivery

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00

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.

Tips to Invest in Equity Delivery

  1. Diversify - Diversification is a risk management technique used extensively by traders and investors. Ensure you conduct thorough research and select stocks ranging through diverse sectors. Any external factor impacting the share price from a specific sector can be offset by another set of shares from a different sector. A well-diversified portfolio, therefore, helps minimize the risk. You shouldn’t invest all your money in one share. Build a mix bag when you are buying shares. By investing in different companies, you’ll benefit in the long run.
  2. Patience – It’s known fact that share markets are volatile by nature. It will test your patience regularly. Equity delivery allows you to hold shares in the Demat account for as long as you want. Do not panic when there are sudden price fluctuations in the market. Beginner traders may sometimes panic as they see a sharp decline in the prices of their securities, prompting them to sell their holdings. However, you must be patient and not make rash decisions. Have belief in your analysis and wait for the prices to bounce back. Holding the stock for a more extended period may be favourable.

Benefits of Equity Delivery

Delivery trading offers numerous benefits, as mentioned below:

  1. Since you take the delivery of the shares, it is your decision when you want to sell them. You can look for ideal conditions for selling the shares for maximum profits and hold on to them until then. The tenure for which you want to have ownership of the purchased securities depends on you.
  2. Various banks and financial institutions grant loans against securities. In times of a financial crunch, your shares come in handy as they can be pledged, and you can avail of a loan against them.
  3. With shares in your Demat account, you receive the dividends that the company may distribute.
  4. Investing your money in a fixed-income vehicle may fetch constant returns. However, investing in high-growth companies has the potential to make significant profits and can offer tangential returns on investment.
  5. Taking delivery of shares qualifies you to receive bonus shares when announced by the company. When companies make substantial profits, they may issue 1:1 bonus shares, which implies you get an extra share for every share you own.

What are Equity Delivery Charges?

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.

T+2 settlement meaning

In the stock market, T+2 Settlement refers to the process where transactions are completed two working days after the trading day. This means that after you purchase stocks, the final settlement occurs on the second business day. This cycle is essential for equity delivery, ensuring that the transfer of ownership and funds is systematically handled, providing a clear timeline for both buyers and sellers.

Conclusion

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.

Share this article: 

Frequently Asked Questions

What is equity delivery in the stock market?

Answer Field

Equity delivery refers to the buying and holding of stocks for a longer period, where the investor receives actual ownership of the shares. This approach allows for potential appreciation in value over time, as opposed to quick trades.

What is free equity delivery?

Answer Field

Free equity delivery allows investors to buy stocks and hold them without incurring brokerage fees for delivery trades. This option enables investors to benefit from long-term price movements without the cost associated with traditional trading.

What is the distinction between intraday trading and equity delivery?

Answer Field

Intraday trading involves buying and selling stocks within the same trading day, while equity delivery entails purchasing stocks to hold for a longer duration. The key difference lies in the trading strategy and holding period.

What is the T+2 period of settlement?

Answer Field

The T+2 Settlement period refers to the time frame in which the transaction is finalised, occurring two working days after the trading day. This allows for proper clearing and transfer of ownership in stock market transactions.

Is intraday better than delivery?

Answer Field

Whether intraday trading is better than equity delivery depends on individual investment goals. Intraday trading aims for quick profits, while equity delivery focuses on long-term growth. Each strategy has its advantages and risks.

No Result Found

investment-card-icon

What is Intraday Trading? Benefits, Types & Advantages

Learn about intraday trading, its benefits, various types, and advantages. Understand how to leverage this strategy for potential profits in the stock market.

investment-card-icon

Muhurat Trading 2024: Everything You Should Know

Celebrate Diwali with Muhurat Trading 2024! Join the one-hour trading window on November 1, 2024 and invest during the auspicious time with 0* brokerage fee.

investment-card-icon

200 Day Moving Average: How it Works

Gain insights into how the 200 Day Moving Average can help traders make informed investment decisions and filter out fundamentally strong securities.

investment-card-icon

What is Equity Delivery

Equity delivery involves buying stocks to hold for the long term. Discover its benefits, charges, and tips for effective investing with Bajaj Broking.

investment-card-icon

Shares vs Stocks | Difference Between Shares and Stocks

Difference Between Shares and Stocks: Unlock the basics of stocks vs. shares with our easy guide for new investors. Navigate the financial markets confidently!

investment-card-icon

What is Online Trading: Meaning, Benefits & its Working

Explore the benefits of online trading and gain insights into its cost structure, risk management strategies, and the difference between online and offline trading.

investment-card-icon

Momentum Trading

Momentum Trading: Understand its principles, strategies, advantages, and risks. Learn how to ride the waves of stock price movements.

investment-card-icon

How to start trading online

Explore in-depth insights on How to start trading online in our Knowledge Centre. Stay informed with expert analysis, tips, and guidance.

investment-card-icon

What is Trading Account: Definition, Types & Benefits

Get started in the stock market with a trading account. Learn about what is trading account, why it’s important, & how to make your own account quickly and easily

investment-card-icon

Exchange Traded Funds (ETF) - Meaning And How Do They Work?

Trading accounts facilitate market access, enabling buying, selling, and managing of shares for investment growth, trading and diversification.

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

8 Lacs + Users

icon-with-text

4.8+ App Rating

icon-with-text

4 Languages

icon-with-text

₹5000+ Cr MTF Book

icon-with-text