Delivery trading is the most common type of trading done in India. It is commonly used by investors, whereby they pay the full price of a stock (equity) with no margin given, and the shares of the stock are deposited into their demat account. Delivery trading is associated with investors because unlike day-traders, who look to enter and exit trades within the same day, investors look to hold their positions for a longer term.
The benefit of delivery trading is that there is no time limit for selling the stock. However, a disadvantage is that delivery trading involves higher costs than intraday trading. The STT (Securities Transaction Tax) is higher for delivery trades versus intraday trades. Furthermore, there is also no margin given to an investor when he does a delivery trade. Finally, a disadvantage of delivery trading is that you cannot short-sell stocks.