5.26Comparison: all trading and investing types
1What is it?
All six styles side by side.
2Why does it exist?
Use this to choose what suits your time, money, temperament and goals.
3Diagram
| Type | Holding | Leverage | Risk | Time needed | Tax | Best for |
|---|---|---|---|---|---|---|
| Delivery | Any | None | Medium | Low | STCG/LTCG | Beginners, investors |
| Intraday | Same day | Up to 5× | Very high | Full day | Speculative business income | Experienced traders |
| Margin (MTF) | Days–months | 2–4× | High | Medium | STCG/LTCG + interest cost | Experienced only |
| Swing | Days–weeks | Usually none | High | Medium | STCG | Part-time traders |
| Positional | Weeks–months | Usually none | Medium–high | Low–medium | STCG/LTCG | Trend followers |
| Long-term | Years | None | Lower over time | Low | LTCG | Most people |
4Quick revision
- Shorter horizon + leverage = higher risk.
- Long-term delivery suits most beginners.
5Knowledge check
Q1. Which style has the highest risk?Show answer
Intraday (with leverage).
Q2. Which suits most beginners?Show answer
Long-term delivery investing.
Q3. Which has interest cost?Show answer
Margin trading (MTF).