What is Delivery in Stock Market?
Introduction
Ever heard someone say, “I bought delivery stocks today!” and wondered what they meant? If the stock market feels like a maze of confusing terms, you’re not alone. But don’t worry—we’re going to break it down in a way that even your grandmother could understand (and maybe start investing herself!).
In this article, we’ll explain what is delivery in stock market, how it works, and why it’s important. We’ll also touch on the best algo trading software in India, because let’s face it—technology is changing the way we invest.
Learn what is delivery in stock market in simple terms. Discover best algo trading software in India & top algo trading platforms in India today!
What is Delivery in Stock Market?
Imagine buying a book online—you pay for it, and the book is delivered to your doorstep. Similarly, in delivery trading, when you buy a stock, it gets “delivered” to your Demat account and stays with you until you choose to sell it.
In simple terms, delivery in stock market means buying shares and holding them for more than one trading day.
You own them. They’re yours.
Delivery vs Intraday Trading – What’s the Difference?
Let’s say two friends, Ramesh and Suresh, both buy shares today.
Ramesh sells his shares by the end of the day—that’s intraday trading.
Suresh keeps his shares for weeks or even years—that’s delivery trading.
Here’s a quick comparison:
Feature
Delivery Trading
Intraday Trading
Holding Period
More than a day
Same day
Ownership
Yes
No
Risk Level
Lower (relatively)
Higher
Brokerage Fees
Higher
Lower
How Does Delivery Trading Work?
Here’s how it usually goes:
Open a trading and Demat account with a broker.
Buy shares during market hours.
Shares are transferred to your Demat account after T+2 days (Transaction day + 2 days).
You can now hold or sell them whenever you want.
Think of your Demat account as a locker for digital stocks—safe and secure.
Benefits of Delivery Trading
So why do people love delivery trading?
Ownership of Shares: You actually own the stock.
No Pressure to Sell Same Day: You can wait for the right time.
Long-Term Gains: Benefit from dividends, bonuses, and price appreciation.
Lower Stress: No need to monitor the market constantly.
It’s like planting a tree. You nurture it, give it time, and eventually, it gives you shade and fruit.
Risks Involved in Delivery Trading
As with any investment, delivery trading comes with its own risks:
Market Volatility: Prices can fall after you buy.
Opportunity Cost: Your money is tied up in stocks.
Brokerage Charges: Holding long-term may cost more in fees.
Company Risks: If the company performs poorly, so will your investment.
Who Should Choose Delivery Trading?
Delivery trading is ideal for:
Long-term investors
Beginners
People with full-time jobs (less time to monitor market)
Those saving for future goals like buying a house or child’s education
If you’re patient and think long-term, delivery trading might be your best friend.
How to Do Delivery Trading – Step-by-Step Guide
Here’s your beginner’s roadmap:
Open a Demat + Trading Account (Zerodha, Upstox, Angel One, etc.)
Transfer funds to your trading account.
Choose your stocks (Do your research!).
Place a BUY order and select ‘Delivery’ option.
Wait for T+2 days, and voila—stocks are delivered to your Demat.
Monitor or sell when the time is right.
Charges and Costs Involved
Be aware of these common charges:
Brokerage fees
STT (Securities Transaction Tax)
GST
SEBI turnover fees
Stamp duty
Tip: Compare brokers to find lowest charges for delivery trading.
Best Practices for Delivery Trading
Want to be a smart delivery trader? Follow these tips:
Research before you invest.
Avoid rumors and tips on social media.
Diversify your portfolio.
Invest only what you can afford to hold.
Keep a long-term vision.
Patience pays off.
Introduction to Algo Trading
Now, let’s talk tech.
Algo trading, short for algorithmic trading, uses computer programs to buy and sell stocks based on pre-set rules. It’s like using a robot assistant for your trades.
How Algo Trading Works in India
In India, algo trading has grown rapidly, especially with the rise of retail investors and faster internet.
Here’s how it works:
Create a strategy (e.g., buy when price dips 5%)
Code it into software
Software scans the market and executes trades instantly
It removes human emotions and improves speed—key ingredients in successful trading.
Best Algo Trading Software in India
Quanttrix: Key Features of a Leading Algo Trading Software in India
AI-Powered Automation: Quanttrix leverages artificial intelligence to automate trading strategies, enabling real-time market analysis and execution without manual intervention.
User-Friendly Interface: Designed for both beginners and professionals, Quanttrix offers a no-code platform, simplifying the process of setting up and managing algorithmic trades.
Smart Risk Management: The platform includes built-in risk management tools such as stop-loss orders, position sizing, and hedging strategies to minimize potential losses.
Backtesting Capabilities: Quanttrix allows users to test their trading strategies against historical data, helping refine approaches before deploying them in live markets.
Cloud-Based Infrastructure: Being cloud-based, Quanttrix ensures high-speed, low-latency execution, crucial for taking advantage of market opportunities promptly.
Integration with Major Brokers: Quanttrix seamlessly integrates with leading Indian brokers like Dhan, facilitating smooth trade executions directly from users’ brokerage accounts.
SEBI Compliance: Operating within the regulatory framework set by SEBI, Quanttrix provides a legal and compliant solution for algorithmic trading in India.
Customizable Strategies: Users can tailor their trading strategies to suit individual preferences, with options ranging from momentum-based to delta-neutral approaches.
Real-Time Monitoring: The platform offers real-time monitoring of positions and performance, allowing traders to stay informed and make timely decisions.
Transparent Pricing: Quanttrix maintains a transparent pricing model with no hidden fees, ensuring users are aware of the costs associated with their chosen plans.
Top Algo Trading Platforms in India
Top Algo Trading Platforms in India: Spotlight on Quanttrix
In the rapidly evolving landscape of algorithmic trading in India, several platforms have emerged to cater to both novice and seasoned traders. Among these, Quanttrix stands out for its innovative approach and user-centric features.
Why Quanttrix is Gaining Traction
AI-Powered Trading: Quanttrix leverages artificial intelligence to analyze market data and execute trades with precision, minimizing human error and emotional biases.
User-Friendly Interface: Designed with simplicity in mind, the platform caters to traders of all experience levels, eliminating the need for complex coding.
Customizable Strategies: Users can tailor algorithmic strategies to their specific trading goals, enhancing flexibility and control.
Real-Time Execution: The platform ensures swift trade executions, capitalizing on market opportunities as they arise.
Risk Management Tools: Incorporates features like stop-loss orders and portfolio balancing to mitigate potential losses.
Quanttrix’s commitment to integrating advanced technology with user accessibility positions it as a formidable player in India’s algo trading arena.
Combining Delivery and Algo Trading – Is It Possible?
Yes, it is!
You can use algo strategies to time your delivery trades—for example:
Buy when the stock breaks 200-day average
Sell when it dips below a key support level
This hybrid approach blends technology and long-term investment, making your strategy smarter and more efficient.
Final Thoughts and Recommendations
So, now you know what is delivery in stock market—and hopefully, it doesn’t sound like a mystery anymore!
If you’re just starting, consider beginning with delivery trading. It’s safer, simpler, and perfect for building wealth over time.
Once you’re confident, explore algo trading software in India to level up your game.
Remember, the best investors aren’t the fastest—they’re the most consistent.
FAQs
What is the meaning of delivery in stock market?
Delivery in stock market means buying shares and holding them in your Demat account beyond one trading day.
Is delivery trading better than intraday trading?
Yes, for beginners and long-term investors, delivery trading is usually better due to lower risk and actual ownership.
What are the charges in delivery trading?
Charges include brokerage, STT, GST, SEBI fees, and stamp duty. These vary by broker.
Can I use algo trading for delivery stocks?
Yes, you can set up strategies using algo trading platforms to help decide when to buy or sell delivery stocks.
What is the best algo trading software in India?
Popular one Quanttrix is the best, depending on your needs and skill level.
