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In today’s fast-paced financial markets, traders often engage in intraday trading to capitalize on short-term price movements.
However, there may be times when a trader wants to hold onto a stock for the long term and needs to convert intraday to delivery positions.
Converting from intraday to delivery can be a complex process, so it’s essential to comprehend all steps involved so the transition runs as seamlessly as possible.
Whether you’re just starting or an experienced trader, our this article on ‘how to convert intraday to delivery‘ will equip you with the knowledge to convert your intraday trades into delivery and hold stocks over the long term.
How to Convert Intraday to Delivery
To convert intraday to delivery, it really matters which broker’s platform are you using as the interface could be different for each stockbroker.
Here we have figured this out for you by mentioning the steps to convert your intraday position to delivery for each major brokerage firm.
How to convert intraday to delivery in Zerodha Kite
To convert intraday to delivery in Zerodha kite, follow these steps:
Kite App:
- Tap on Portfolio and then tap on Positions .
- Tap on position to convert and scroll up.
- Tap on Convert Position.
Kite Web:
- Click on Positions .
- Click on Options .
- Click on Convert .
- Confirm the order by clicking on Convert .
How to convert intraday to delivery in Upstox
To convert intraday to delivery in Upstox, follow these steps:
- Go to the trade section
- Click on the positions tab
- Now select the position that you wish to change
- Click ‘convert’ to on the top right corner of your screen
How to convert intraday to delivery in 5paisa
To convert intraday to delivery in Angel Broking, follow these steps:
- Click on the ‘trade’ section in the bottom right corner
- Select the stock whose position you want to convert
- Now, click on the button saying ‘convert intraday to delivery’
- Select Yes
- Close the tab
How to convert intraday to delivery in Angel Broking/ Angel One
To convert intraday to delivery in Angel Broking, follow these steps:
- Click on the ‘Orders Tab’ on the menu at the bottom
- Go to the ‘Positions’ Tab
- Select ‘Convert’ to change your position
Why Traders Convert Intraday to Delivery
Here are some reasons why traders may decide to convert intraday trades into delivery trades:
- Capitalizing on Long-Term Growth Potential: Sometimes traders identify stocks with potential long-term growth but want to enter the position at a lower price. Intraday trading may give them little time to hold onto the store long enough for benefits from its potential growth, so they may opt to convert their intraday position into delivery.
- Volatility Avoided: Intraday trading can be more volatile than delivery trading, with prices fluctuating rapidly over short periods. Converting to a delivery position allows traders to reduce this exposure to volatility by holding onto the stock for an extended period and riding out any short-term price changes.
- Meeting Margin Requirements: Intraday trading often requires traders to maintain high margin levels, which can be stressful and risky. Converting to a delivery position helps meet margin requirements more quickly as you retain ownership of the stock for extended periods and may benefit from any price appreciation.
- Benefitting from Dividends: If a stock pays dividends, holding onto it, long-term can be advantageous as traders can accumulate dividends over time. Converting an intraday position into a delivery position allows traders to hold onto their stock and receive dividends.
- Tax Benefits: In certain instances, holding onto a stock for longer than one year may result in lower taxes on capital gains. Converting an intraday position to a delivery position allows traders to have onto their stocks longer and capture any profits that arise, thus lowering taxes on any gains realized.
- Avoiding Time Constraints: Intraday trading requires traders to make quick decisions and act upon them quickly. By converting to a delivery position, traders can circumvent the time constraints associated with intraday trading and take a more measured approach when investing.
How to Determine the Best Time to Convert Intraday to Delivery Position
When to convert an intraday position to a delivery position depends on several factors, including market conditions, individual goals, risk tolerance, and the specific stock or asset being traded.
Here are some general guidelines traders may use when determining when it’s best to convert their intraday position to a delivery one:
- Price Movement: Traders may consider the price movement of the stock or asset they are trading. If it has been steadily rising and shows potential for long-term growth, now could be an excellent time to convert an intraday position into a delivery position and reap the rewards of future gains.
- Technical Analysis: Traders may use specialized analysis tools to identify critical support and resistance levels and potential entry and exit points. For instance, if a stock has broken through a crucial resistance level, it could indicate bullish momentum and be an excellent time to convert an intraday position into a delivery one.
- Fundamental Analysis: Traders may use fundamental analysis to assess a company’s financial health and growth potential. If the company has a healthy balance sheet, increasing revenues, and positive earnings reports, it could be wise to convert an intraday position into a delivery position to capitalize on any future gains from this potential growth.
- Risk Tolerance: Traders must assess their risk tolerance and select a strategy that aligns with their goals and appetite for risk. If they have an extended investment horizon and feel comfortable taking on higher levels of risk, then holding onto the stock for longer as a delivery position could be beneficial.
- Tax Implications: Traders may want to consider the tax consequences of converting an intraday to a delivery position. If holding onto the stock for more than one year can result in reduced capital gains taxes, converting from an intraday position into a delivery one. Could be advantageous
- Market Conditions: Finally, traders must consider market conditions such as overall economic trends, geopolitical events, and other elements that may influence the stock market. Suppose conditions are favorable and indicate a positive direction for one particular stock. In that case, it may be advantageous to convert an intraday position into a delivery position to reap potential future gains from these gains.
Frequently Asked Questions (FAQs) about How to Convert Intraday to Delivery
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