The core difference
Delivery (CNC)
You pay the full amount, the shares come to your demat account on T+1, and you can hold them for years. Your risk is the business itself; time is on your side.
Intraday (MIS)
You buy and sell (or sell and buy back) the same stock within the same session. Positions are squared off before close, nothing enters your demat account, and profits or losses are settled in cash. Brokers allow leverage on intraday subject to SEBI’s 20% upfront margin rule — which magnifies both profit and loss.
Costs are different too
| Head | Delivery | Intraday |
|---|---|---|
| STT | 0.1% on both buy & sell | 0.025% on sell only |
| Brokerage | As per plan | As per plan (usually lower) |
| DP charge | On sell (per ISIN) | None (no demat movement) |
| Taxation | Capital gains (LTCG/STCG) | Speculative business income — taxed at your slab |
Which one is for you?
If your goal is wealth creation, delivery investing in good businesses and index funds is the proven route — compounding needs time in the market. Intraday is a high-skill, high-attention activity where most beginners lose money after costs; SEBI’s own study of equity F&O found 9 out of 10 individual traders made net losses.
If you do trade intraday: predefine your stop-loss, risk only a small fixed percentage per trade, avoid revenge trades, and never carry leverage you don’t understand. Read our Risk Management guide.
Key terms
Square-off
Closing an open position — selling what you bought (or buying back what you sold) intraday.
Leverage
Trading a bigger position than your capital by using margin. It multiplies losses exactly as fast as profits.
MTF
Margin Trading Facility — funding delivery purchases partly with broker financing, at interest, per SEBI rules.
Auto square-off
Brokers close MIS positions before market close (with a possible charge) if you haven’t.
Test yourself
1. In intraday trading, shares…
Intraday positions are squared off the same day — only the cash difference settles.
2. STT on equity delivery is charged…
Delivery STT is 0.1% on both legs; intraday is 0.025% on the sell leg.
3. Intraday profits are taxed as…
Intraday equity is speculative business income under Indian tax law.
FAQs
Yes, before the cut-off and subject to margins/funds — from the app or with your RM’s help.
MIS positions are auto-closed before market close by design; carry positions need CNC/NRML with full margins.
No — brokers restrict illiquid or high-risk (e.g. trade-to-trade segment) stocks from intraday leverage.
In delivery trading you buy shares and hold them — they are credited to your demat account and remain yours until you sell. In intraday trading you buy and sell the same day, closing your position before the market shuts. Delivery builds long-term wealth; intraday is short-term trading that needs skill, discipline and strict stop losses.
A stop loss is an order that automatically exits your position if the price crosses a level you set, capping your loss. For traders it is essential — it turns an unlimited risk into a known, small one. Decide your exit level before you enter a trade, not after the price starts falling.
Yes, in most cases you can convert an intraday position to delivery before the market closes, provided you have the full funds for the purchase. The reverse is also possible subject to margins. Do note that conversion depends on the stock being available for delivery trades and on your available balance.
No. PCJ does not run a research desk and does not provide any investment advice, tips or recommendations. We provide the trading platform, market data and execution only; your Relationship Manager assists with account and service support, not with what to buy or sell. Every investment decision is entirely your own — SEBI registration and NISM certification do not guarantee returns, and no honest broker will promise them.
A Demat (dematerialised) account holds your shares, bonds, ETFs and other securities in electronic form, just like a bank account holds money. When you buy shares they are credited to it, and when you sell they are debited from it. PCJ opens your demat account with NSDL, India's first and largest depository.
The trading account is what you use to buy and sell on the exchange, while the demat account is where your securities are stored after the trade settles. They work as a pair: money and orders flow through the trading account, and shares rest in the demat account. PCJ opens both together in one application.
CAS stands for Consolidated Account Statement. It is a single monthly statement that shows all your holdings across NSDL, CDSL and your mutual funds in one place. It reaches you by email and is the easiest way to review everything you own, even if you have accounts with more than one broker.
Yes, and you should. Adding a nominee means your investments can be transmitted smoothly to your loved ones without lengthy paperwork. SEBI requires every demat account holder to either register a nominee or formally opt out. You can add or change a nominee online in a few minutes — ask your RM for the link.
Physical share certificates can no longer be sold or transferred — SEBI requires them to be dematerialised first. The process involves submitting a Demat Request Form along with your certificates through your depository participant. PCJ handles this end to end; see our Physical to Demat page for the steps and documents.
Listed equity held for more than 12 months qualifies as long-term capital gains; 12 months or less is short-term, taxed at special rates. Rates and exemption limits change with Finance Acts, so check our Charges & Taxes learn page for the current figures, and consult a tax professional for your specific situation.
Educational content for general awareness only — not investment, trading or tax advice. Investments in securities market are subject to market risks; read all related documents carefully. Figures/rates are indicative for FY 2025-26 and may change.