difference between delivery and intraday trading

In a delivery (CNC) trade you buy shares and they are credited to your demat account, so you can hold them for as long as you like; in an intraday (MIS) trade you buy and must sell the same day, and any open position is auto-squared-off by the broker before the close. Intraday offers leverage and slightly lower charges but forces an exit by around 3:15–3:20 pm, while delivery needs the full amount and has no square-off. On the order screen these are the CNC and MIS options.

is delivery or intraday better for beginners

Delivery is far safer for beginners. Intraday adds leverage, a forced same-day exit and the pressure of watching every tick — exactly the combination that produces fast losses for people still learning. Delivery lets you hold through normal volatility, learn without a clock running, and avoid the margin and square-off mechanics until you genuinely understand them.

what is the meaning of CNC and MIS

CNC (Cash and Carry) is the product code for a delivery trade — you pay the full amount and the shares sit in your demat account with no time limit. MIS (Margin Intraday Square-off) is the intraday code — you trade with leverage and the position is closed automatically the same day if you do not exit it yourself. Choosing CNC versus MIS on the order screen is what decides whether a trade is delivery or intraday.

do intraday trades have lower charges than delivery

Per trade, usually yes. Many discount brokers charge zero brokerage on delivery but a small per-order fee on intraday, and the Securities Transaction Tax is lower on intraday — charged on the sell side only — than on delivery, where it applies to both buy and sell. But intraday tempts far more trades, so the total cost of an intraday habit is normally much higher despite the lower per-trade rate.

a trade that must be closed on the same day is called

An intraday trade, placed as MIS (Margin Intraday Square-off) on your broker. If you do not exit it yourself, the broker squares it off automatically before the market closes, usually between 3:15 and 3:20 pm. It is the opposite of a delivery or CNC trade, where the shares are credited to your demat account and can be held with no time limit.

Delivery vs intraday: the difference and which is better

Every order screen makes you choose before you can buy: CNC or MIS, delivery or intraday. It looks like a technicality and it is actually the most consequential setting on the page — it decides whether you own the shares, how much you can buy, and whether a clock starts ticking the moment you are filled.

The one choice on the order screen

	Delivery (CNC)	Intraday (MIS)
What you end up with	Shares in your demat account	A position closed the same day
Time limit	None — hold for years	Must exit before ~3:15 pm
Leverage	None — pay the full amount	Broker funds a multiple of your money
Auto square-off	No	Yes, if you have not exited
STT	0.1% on buy and sell	0.025% on the sell side only
Tax on gains	Capital gains (STCG/LTCG)	Business income (speculative)

Loading interactive demo…

Switch between delivery and intraday and watch the charges — especially the STT — change. Then note how far the stock must move just to break even.

Worked example

The same ₹1,00,000 trade, two ways

₹1,00,000 bought and sold

Delivery — STTRoughly ₹100 + ₹100 = ₹2000.1% buy + 0.1% sell

Intraday — STTRoughly ₹250.025% on the sell only

Delivery — brokerageMany discount brokers charge nothingOften ₹0

Intraday — brokerageAbout ₹40 for the round trip~₹20 per order

The real catchTwenty trades a week dwarfs any per-trade savingIntraday invites frequency

Per trade, intraday looks cheaper — lower STT, and the same flat brokerage. The trap is behavioural: the lower cost and the leverage encourage far more trades, and twenty round trips a week at a few rupees each, compounding with slippage, cost far more than the delivery investor who traded twice.

Which one, and when

Choose delivery when

You are investing, not trading
You want to hold past today
You are still learning
You cannot watch the screen all day

Choose intraday only when

You have a tested same-day edge
You can monitor and exit yourself
You have sized for the leverage
You accept a forced square-off

Check yourself

You buy an intraday (MIS) position and it is down 4% near 3:10 pm. You do nothing. What happens?

Simple bhasha mein

Ghar le jao ya wahin chakh lo

Sabzi ghar le jao toh jab tak chaaho rakho — woh delivery (CNC) hai. Stall pe hi khaa ke jao toh shaam se pehle khatam karna padega — woh intraday (MIS) hai, aur udhaar (leverage) bhi milta hai jo nuksaan utna hi badha deta hai. 3:15 pe broker khud square-off kar deta hai, aksar din ke sabse kharab bhaav pe. Seekhte waqt sirf delivery karo — na clock, na udhaar.

What to remember

CNC is delivery — you own the shares with no time limit; MIS is intraday — closed the same day.
Intraday offers leverage and lower STT, but adds a forced square-off and a magnified loss.
Intraday profit is taxed as speculative business income, not capital gains.
The per-trade saving on intraday is dwarfed by the extra trades it encourages.
While learning, trade delivery only — remove the leverage and the clock.

You reached the endMark it done and keep your streak going.

Up nextBTST: buying today and selling tomorrow Previous: What it really costs: charges and taxes

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Common questions

Short, direct answers to what people ask about this topic.

difference between delivery and intraday trading: In a delivery (CNC) trade you buy shares and they are credited to your demat account, so you can hold them for as long as you like; in an intraday (MIS) trade you buy and must sell the same day, and any open position is auto-squared-off by the broker before the close. Intraday offers leverage and slightly lower charges but forces an exit by around 3:15–3:20 pm, while delivery needs the full amount and has no square-off. On the order screen these are the CNC and MIS options.
is delivery or intraday better for beginners: Delivery is far safer for beginners. Intraday adds leverage, a forced same-day exit and the pressure of watching every tick — exactly the combination that produces fast losses for people still learning. Delivery lets you hold through normal volatility, learn without a clock running, and avoid the margin and square-off mechanics until you genuinely understand them.
what is the meaning of CNC and MIS: CNC (Cash and Carry) is the product code for a delivery trade — you pay the full amount and the shares sit in your demat account with no time limit. MIS (Margin Intraday Square-off) is the intraday code — you trade with leverage and the position is closed automatically the same day if you do not exit it yourself. Choosing CNC versus MIS on the order screen is what decides whether a trade is delivery or intraday.
do intraday trades have lower charges than delivery: Per trade, usually yes. Many discount brokers charge zero brokerage on delivery but a small per-order fee on intraday, and the Securities Transaction Tax is lower on intraday — charged on the sell side only — than on delivery, where it applies to both buy and sell. But intraday tempts far more trades, so the total cost of an intraday habit is normally much higher despite the lower per-trade rate.
a trade that must be closed on the same day is called: An intraday trade, placed as MIS (Margin Intraday Square-off) on your broker. If you do not exit it yourself, the broker squares it off automatically before the market closes, usually between 3:15 and 3:20 pm. It is the opposite of a delivery or CNC trade, where the shares are credited to your demat account and can be held with no time limit.

Delivery vs intraday: which one, and when

The one choice on the order screen

Common questions