Introduction
The stock market is chockful of different types of trading methods and one of them happens to be delivery trading. Delivery trading is a long-term trading method that helps investors hold onto securities for as long as they want and then sell them to generate profits. Here we will be looking at everything you need to know about delivery trading and how to get started with the process. When questions like ‘What is delivery trading?’ arise in your mind, this is the article you should refer to.
Understanding Delivery Trading
Think of delivery trading as a way of investing in the stock market in which investors get to hold securities like shares for as long as they want and then sell them to generate profits. The holding period for delivery trading can range anywhere between 2 days to more than 2 decades.
Getting Started with Delivery Trading
The very first step to getting started with delivery trading is by opening a Demat and trading account with a stockbroker of your choosing.
Once that is done, listed below are the steps you need to follow to get started on your delivery trading journey
- Visit the official website of your stockbroker or depository participant and fill out the Demat and trading account opening forms
- For identity proof copies like PAN cards with a valid photo, Aadhaar, Voter ID, driving licence, passport or any ID card should be kept ready
- For address proof copies of voter ID, passport, ration card, Aadhaar, utility bills, spouse’s address proof in spouse’s name, etc can be used.
- Copies of your ITR, salary proof, bank account statement for the past 6 months etc can be used for income proof
- Bank details like account number, account type, IFSC, etc need to be added when filling out a Demat account form
- After all the formalities have been carried out, you need to E-sign the Demat account opening form.
- Once submitted, your Demat account will become active soon after.
- Your DP will provide you with all the details you need to help you access your account
- This includes your Demat account number and the login credentials
- Upon the successful opening of the Demat and trading account, you can start investing in stocks.
Advantages of Delivery Trading
When it comes to delivery trading, there are quite a few advantages that traders need to be aware of. Some of them are listed below:
- With delivery trading, investors and traders have complete control over the purchased stocks enabling them to decide when and how much to sell.
- Delivery trading is a great way to let investors reap the benefits that accompany long-term stock investments.
- Because of its nature of holding stocks for the long term, delivery trading makes for one of the least risky ways to trade.
- In delivery trading, since investors own the shares themselves, they automatically become eligible for dividends and stock bonuses from the company. These can act as wonderful sources of alternate income.
Conclusion
Delivery trading, like many other forms of trading, is a way to trade in the stock market to generate profits. However, unlike many other trading methods, delivery trading is one of the least risky trading methods investors can indulge in. This is because it is a long-term investment method that helps investors hold securities for anywhere between 2 days to more than 2 decades. With this long-term investment process, investors can also benefit from the dividends and the stock bonuses from the company and use them as an alternate source of income.
Additional Read: For more information about our business and services, feel free to visit our Google My Business page.
