Delivery Trading
Delivery trading involves buying/selling a security and settling it by taking/giving delivery. Unlike intraday trading, where positions are squared off within the same session, delivery trading means the buyer takes delivery of the asset. This approach suits both short-term and long-term strategies, with holdings potentially lasting from overnight to any time frame. It allows investors to retain the asset in their portfolio after settling the trade with delivery. Delivery trading offers flexibility for those aiming to capitalize on price movements over extended periods, distinguishing it from the rapid pace of intra-day trading.
Related Terms
Futures
Futures are derivative contracts that create an agreement between two parties to buy or sell...
Capital Asset Pricing Model
The Capital Asset Pricing Model (CAPM) is a financial model used to determine the expected...
Company Debentures
A debenture is a type of debt instrument that companies issue to raise funds. In...
Box Spread
A box spread is an options trading strategy combining a bull call spread and a...
Defensive Stock
A defensive stock refers to shares of companies that provide stable and consistent returns and...
EBITDA
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric...
