Can Delivery Shares be Sold on the Same Day? Understand Delivery Trading

Can Delivery Shares be Sold on the Same Day? Understand Delivery Trading

Know the answer can delivery shares be sold on the same day?: The markets can be quite confusing to a new trader and investor. There are a lot of new terms and each is only more confusing than the next.

To make it even more complicated – What you learn about investing and trading is quite different from actual practice. We’re going to clear out one such query that newbie investors and traders have – “Can delivery shares be sold on the same day?”

Read ahead to find out with Examples!

Before we answer that question, first you need to know what is a delivery in the market.

What Is A Delivery?

Delivery in the stock market is when you purchase equity and it is delivered to your Demat account i.e. if you have bought it for long-term investing.

Trade Cycle in India

If you buy a stock today, then as per the usual settlement cycle, it is T+2. Here T stands for Trade Date, which is the day you have purchased the stock. So T+2 = Trade date plus 2 days for the shares to reflect in your Demat account. Deliveries do not officially take place on the same day as buying the shares for investing.

You will receive the delivery 2 days after the order is placed, which is T+2. However, of late India has been moving to a T+1 trade cycle. 

In the case of equity delivery selling, the trade can be authorized through the TPIN generated by CDSL, and on T+1, the shares are debited automatically from the Demat account. 

Can Delivery Shares be sold on the Same Day?

The answer to this is – Yes. Delivery shares can be sold on the same day. But, when you sell the stock within the same day, it will be considered an Intra-day trade instead of a delivery. 

One way to do this is to convert your position on your trading/brokerage app or platform. Let’s understand this with an example to understand – can delivery shares be sold on the same day.

Quick Read: Can We Sell Shares Without Buying? Everything you need to Know About Short Selling

Example of Same Day Delivery

Let’s say that you bought 10 stocks of ITC today for delivery. 

The situations where you can sell delivery on the same day are –

Situation 1

Let’s assume you bought the stock for the long term, and due to some bad news, such as earnings, a shift in policy, or a bad quarter surface online and you wish to sell your position before the price starts falling. 

Here, you can convert your existing position from long-term and sell our positions the same day and cut losses quickly.

Situation 2

In fortunate circumstances, the stock you bought could hit the desired price within the same day of buying it, meaning that your profit target has already been reached. In such cases, you can sell off your holding the same day. This can be beneficial in terms of taxes as well.

Charges for Same Day Delivery

Intraday charges may vary from delivery charges, as both are different and your broker might have different brokerage charges for the same. 

You can check the order charges of various online brokers such as Zerodha, Angel One, Edelweiss, etc. 

In Closing

The above situations mentioned are quite rare in the stock market, which makes the need to sell delivery stocks on the same day quite unlikely. As long as it’s to avoid losses and book profits quickly, same-day delivery is understandable. This is our take on “Can delivery shares be sold the same day?” 

If you have your own ideas on this topic, then drop a comment below and let us know. Happy Investing!

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