The share trading is an area of income which attracts people from various fields. Some information or knowledge, an account in share market, little capital and some risk are the essential features of every trade in this market,and hence themajority of traders believe that they can trade well and fetch hefty profit from the market. However, it is not that simple and also not that rocket science that one cannot do it. The only thing important here is one’s insight and knowledge of the market that can take him ahead in the world of trading.
As per the market regulator for every trader, there are some mandatory requirements. In these requirements, one must have a trading and a demat account. The trading account is one in which the trader can carry out the trading of shares such as buying and selling. The demat account is one in which one can hold the shares bought for thelong-term purpose. However, there is no charge for atrading account while the demat account charges are fixed as annual maintenance only,and many of the service providers also offer a free demat account to keep the client trade with them only. These accounts can be opened by only two authorities who are known as NSDL and CDSL. The account can be operated with the help of slips which are as good as cheques. Every account here bears a number as per which it is identified and used to transact.
The trading account:
This account bears brokerage rates and no fixed charges for anaccount. If the client carries out any trade, he needs to pay the amount of brokerage to the service provider and no charges to be paid in case of no transaction in a short or long term.
For one who wants the complete command of his trading account and passes the transactions immediately, the online account is better. In this case, he needs to have a computer or a smartphone with the application where the transaction can be done. He needs to have a highspeed internet connection to have the trade at the best speed. In case of trading with large volume, this option is suitable where the trader can also have aclear view of his account in terms of positions and credit availability. Many brokers charge low brokerage with such clients,and hence it also proves cost effective in the long run.
However, during market session, every one may not have such time to keep watching the market and trade. Hence for the people who do not find such time can go for the offline account where in case of requirement of trading, the client just needs to call the operator and instruct for trading. He follows the instructions accurately and hits the trade. He also calls the client to update the position of his account such as available limit, hitting of trade or setting of limit such as profit booking or stop loss as per the instruction of the client.