Intraday vs Delivery Trading: Differences and Charges

Intraday trading means opening and closing a position in the same trading day. Delivery trading means buying shares to carry forward through settlement into your demat account, the account that holds securities. The main differences are the holding period, funding terms, closing deadline and charges. Neither label guarantees a safer trade or a profit.

This comparison covers ordinary cash-equity share trades. Carrying a futures or options position overnight is a different contract arrangement. Also, selecting a delivery product does not necessarily make a buy-and-sell transaction a delivery trade if you close the same shares that day.

Intraday and delivery side by side

Zerodha calls its delivery equity product Longterm (CNC) and its intraday product MIS. Those are its product labels. Its help centre says a share bought and sold that day in CNC still attracts intraday brokerage. If only part of a buy order is closed intraday, the full buy order can attract that brokerage under its stated policy.

Which is better: intraday or delivery?

Neither is better in general. The right question is which one matches your time, your money and your temperament. This page gives no advice on what to trade. It lists the questions that decide the fit.

A journal can help here. After 20 trades of each type, compare your results after charges, and also how often you followed your plan. See intraday vs swing trading and intraday trading journal.

Intraday vs delivery charges

Zero brokerage does not remove transaction taxes or other applicable fees. A depository participant fee is a charge associated with debiting held securities, and its amount depends on the account and tariff. The charges guide explains the categories beyond the comparison table.

Leverage and margin differences

A delivery purchase normally needs the full purchase value in your account. Intraday margin is a broker facility that lets you take a position larger than your cash, within the broker's rules for that stock. A larger position makes both gains and losses larger, so a small price move can cost much more than your deposit suggests. SEBI and the exchanges set margin rules, and the broker may add its own limits. Read intraday leverage myths and delivery vs margin trading.

Matched example: the same prices, different tax on the transaction

Assume a fictional purchase of 100 shares at ₹1,000 and a sale at ₹1,020. Buy value is ₹1,00,000; sell value is ₹1,02,000; gross gain is ₹2,000. Compare an illustrative same-day exit with a separate hypothetical delivery holding sold later at the same assumed price.

Before billing rounding, the delivery subtotal exceeds the intraday subtotal by ₹188.50. Zerodha rounds STT to the nearest rupee, so the actual billed difference can vary. Brokerage, exchange charges, regulatory charges, applicable service taxes and any demat fee must still be added. The ₹2,000 gross gain is before all these deductions. Different broker tariffs can change the total-cost comparison.

For rate changes, consult the charges changelog. Do not choose a holding period solely to minimise one line of charges; the price risk and original trading plan also matter.

Settlement is a separate clock

NSE describes T+1 and T+0 settlement cycles. T means the trade date; T+1 refers to the next settlement working day under the applicable calendar, while T+0 settles on the trade date. A weekend or bank holiday can change the calendar date. Check the cycle and settlement schedule for the actual transaction.

Settlement timing does not mean you must hold a delivery position for a prescribed investment period. It also does not guarantee that a share will be easy to sell when you decide to exit. The settlement guide covers the distinction between a trade date and completion of settlement.

Do not rely on the broker to close an intraday trade

A broker's automatic closing process is subject to its terms and available execution. Zerodha explicitly says the client is responsible for closing open positions and that the broker is under no obligation to do it. Its product overview describes scheduled automatic closure, while the dedicated closing policy adds that responsibility and discretion caveat. Read both together.

Check your own broker's current deadline rather than copying a time from another broker. A position that cannot be closed may create an obligation or a loss beyond the planned intraday session. Conversion to a delivery product is also subject to funding, eligibility and the broker's process.

Margin Trading Facility, or MTF, is a separate funded product with its own terms and costs. It should not be used as another name for ordinary intraday margin. See what MTF means before comparing funding arrangements.

Converting an intraday trade to delivery

Many brokers let you convert an open intraday position into a delivery position before the closing deadline. The terms are set by the broker, so check these points in its help pages:

• Funds: you need enough money or approved collateral to pay for the full purchase value, since the position was bought with intraday margin.
• Deadline: conversion must be asked for before the broker's cut-off time, which differs by broker.
• Charges: a converted position is generally charged as a delivery trade, so delivery STT and stamp duty rates in the table above can apply, and a broker may add its own conversion fee. Ask for its current tariff.
• Risk: you now hold the shares overnight and can lose more if the price opens lower.

Converting to avoid booking a loss changes the nature of the trade. Write down the reason in your notes so you can review it later.

Auto square-off: timing and what happens if you miss it

Auto square-off is a broker process that closes open intraday positions near the end of the session. The time depends on the broker and the product. If your position is closed automatically, you may pay an extra charge and get a price that is worse than a planned exit. If the position cannot be closed, you may face an obligation or loss beyond the session. The best habit is to close the trade yourself, well before the broker's deadline. See auto square-off times and charges.

Dividends and corporate actions for delivery holders

Someone who holds shares on the record date set by the company may be entitled to a dividend, bonus shares or a rights issue, as declared. A position opened and closed on the same day does not leave you holding shares at the end of the day, so it does not carry these entitlements.

Keep transaction charges separate from income tax

STT and stamp duty are transaction charges. They are not a calculation of income tax on your year's results. Keep trade records, costs and the distinction between investment holdings and trading activity clear. Ask a qualified tax adviser how the actual facts apply to your return; a product button alone does not settle that question.

Tax: speculative income versus capital gains

In general, profit or loss from intraday share trades is treated as speculative business income. Shares held for delivery usually fall under capital gains, short-term or long-term depending on the holding period. The rules, rates and section numbers can change with the Budget and with the Income-tax Act, 2025, which applies from 1 April 2026. Speculative losses can generally be set off only against speculative gains, so keep them separate. Use a chartered accountant (CA) for your return. More in intraday trading taxation.

Intraday versus delivery questions

Sources

• NSE: Securities transaction tax circular (checked 16 Oct 2026).
• NSE: Stamp duty on securities (checked 16 Oct 2026).
• NSE: Equity settlement cycle (checked 16 Oct 2026).
• Zerodha: Delivery and intraday product types (checked 16 Oct 2026).
• Zerodha: Intraday closing responsibility (checked 16 Oct 2026).
• Zerodha: Same-day trades in delivery products (checked 16 Oct 2026).
• Zerodha: STT billing precision (checked 16 Oct 2026).