5.2How does delivery trading work?
1What is it?
You place a delivery buy, money is debited, the clearing corporation settles on T+1, and the depository credits the shares to your demat.
2Why does it exist?
Understanding the plumbing explains why you see "T1 holdings" for a day before shares fully appear.
3Diagram
- 1Buy order (CNC)
- 2Exchange matches
- 3Money debited
- 4T+1: clearing settles
- 5Shares credited to demat
4Quick revision
- Order → match → settle T+1 → demat credit.
- Money is debited in full.
5Knowledge check
Q1. What does "T1 holding" mean?Show answer
Shares bought but not yet credited; settlement is pending.
Q2. Who credits shares to demat?Show answer
The depository via your DP.
Q3. When is settlement done?Show answer
T+1.