Intraday vs Delivery Trading: Differences, Costs and Risks

The core difference

Delivery (also called cash-and-carry or CNC) means you pay the full value of the shares and they are credited to your demat account. You can hold them as long as you like.

Intraday (MIS or equivalent) means you buy and sell — or sell and buy — within the same trading session. The position must be closed before the broker's square-off time, or the broker will close it for you.

Costs

Delivery trades pay higher STT (0.1% on both sides) and a DP charge when you sell, but many brokers charge ₹0 or low brokerage on delivery. Intraday trades pay lower STT but brokerage on every order, and frequent trading adds up. Compare with our brokerage calculator.

Leverage and margin

Brokers can give intraday leverage within SEBI's margin framework — the minimum upfront margin is based on the exchange's VaR and ELM margins for each stock. Leverage magnifies both gains and losses. Read what is margin trading.

Risk

Intraday trading demands speed, discipline and stop-losses. Price moves within a single day can be sharp and costs are paid on every round trip. Studies by SEBI have found that a large majority of individual intraday traders in the cash segment lose money, and 93% of individual F&O traders lost money between FY22 and FY24.

Taxation (general)

Under Indian income-tax rules, intraday equity profits are generally treated as speculative business income, while gains on delivery shares are capital gains (short-term or long-term depending on holding period). Tax rules change — confirm current rates with the Income Tax Department or a qualified tax professional.

Which should you choose?

Most people building long-term wealth are better served by delivery investing, low costs and patience. If you want to try intraday, start with a very small amount, use strict stop-losses and track every cost. See also CNC vs MIS orders.