The share market is a known avenue where the trader can trade in the shares of various listed companies on any of the stock exchanges. The market is open for everyone until and unless one is banned for trading by the exchanges as well as the regulatory authorities. The trading is a matter of expertise where the trader needs to have knowledge of the market, price movement, trend and overall development of the market. For a trader, it is mandatory to have a demat as well as a trading account to carry out the transactions.
For a trader who is looking for good profit in the market with the help of regular trading, it is important to get an account opened with any of the leading stock broker or broking company. For this one can check the top 10 stock broker of the market and contact any of their branches. The account opening is the primary process that one has to go for. The client who wants to get an account opened needs to furnish his details in a specific form provided by the service provider with supporting document. One needs to give an identity proof as well as an address proof. A cancelled cheque and a copy of pan card are also required for opening of the demat and trading account. Here one needs to know that the Demat account is for the parking of shares which are bought for long-term investment purpose while the trading on a daily basis is carried out in the trading account.
Intraday trading or delivery based trading?
Well, this question is always there in front of a trader who loves to make aprofit but cannot decide if he should go for intraday trading or delivery based trading. The trader first needs to check his requirement, interest and knowledge as well as theavailability of fund and risk-bearing capacity.
For one who just wants to trade in limited units of shares can go for the intraday trading in the cash segment. If one aims to have a better portfolio and long-term gains, he can go for the delivery based trading. In the delivery based trading, the brokerage, as well as capital investment, is high unless one keeps on rotating the shares. However, usually in short period, such churning may not be possible also,and hence one who goes for delivery based trading must be prepared for the higher capital investment.
There are also other trading avenues such as futures and options in the derivatives segment. Here the trader needs to go for a predefined lot size only. Every lot has a contract that expires on a specific date,and the trader can know in advance by when the contract will expire. Before the expiry of the contract, it is important for him to square off the position else the system may automatically square it off,and one may have to lose handsome amount in such trading also. However, as it offers a long period to square off the position one may create the same for an expiry date of sufficient long period.