Skip to content

5.1What is delivery trading?

1What is it?

Delivery trading means buying shares and taking them into your demat account, so you own them for as long as you like.

2Why does it exist?

It is the basic, original way of investing: you pay the full price and become an owner.

3Real-life example

Buying a bicycle and taking it home, rather than renting it for an hour.

4Stock market example

You buy 10 HDFC Bank shares with product CNC/Delivery, pay the full amount, and the shares arrive in your demat on T+1.

5Quick revision
  • Buy and hold in demat.
  • Pay the full amount.
  • Choose CNC/Delivery.
6Knowledge check
Q1. Do you pay the full price in delivery?Show answer

Yes.

Q2. Where do delivery shares go?Show answer

Your demat account.

Q3. What product code is used for delivery?Show answer

CNC (Cash and Carry), or simply "Delivery".

More in Level 5: Types of Stock Market Trading and Investing