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Thursday, December 27, 2007

Different types of shares trading

Different types of shares trading
Day trading and Delivery trading are the two main types of shares trading.
¨ Day trading -
Buying and selling of shares on daily basis is called day trading this is also called as Intra day trading. Whatever you
buy today you have to sell it today OR whatever you sell today you have to buy it today and very importantly during
market hours that is
9.55 am to 3.30 pm (Indian time).

¨ Delivery Trading
In Delivery Trading, as the name say, you have to take the delivery of shares and after getting these shares in your
demat account you can sell them at anytime (or you can hold them till you want, there is no restriction). In delivery
trading you need to have the amount required to buy share for example, if you want to buy 100 shares of Reliance at
price 500 than you must have (100*500) Rs. 5000 in your account; once you purchased these shares will get deposited
in your demat account (say after basically, trading day and 2 additional days). Then you can sell these shares when
the price of these shares goes up or else you can sell whenever you want.
Please Note - First you have to buy and sell. You can’t sell before buying in delivery trading while it’s possible in day
trading.

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