Trading account is your gateway to the world of investing in equities. This includes
trading in shares, futures and options. The trading account is where you execute
all the transactions pertaining to the buying and selling of shares and other investment
instruments. To transact in equities, futures or options, a trading account is a
basic necessity. You can open a trading account with a broker.
There are 4 principal reasons why you need to open a trading account. It is considered
to be your gateway to your journey into stock markets…
Trading account is your flow book. It enables you to record buy and sell transactions
in the flow book and then these transactions are either squared off or they are
taken to delivery. Here are 5 benefits of having a trading account.
To trade online you need to activate your trading account with the broker and then
also apply for online trading on the internet. There are additional agreements to
be signed for this. Your process to trade online will be as under:
The first step in online trading is to set your password. The broker will allot
you a user name and a password. You can use the password to log into your broking
account but once logged in you will be prompted to change your password.
Once your password is changed, you must ensure that you remember the password for
future access. Don’t ever write down your password to the trading account at any
place. Also don’t make the passwords too obvious because then any smart hacker will
be able to find out your password by some basic iterations.
Once you log the next step is to go through the complete online trading documentation
and if available the online demo for trading. The demo will adequately explain the
nuances of online trading to you, which you must use to the fullest extent.
Once you are familiar with the finer points of online trading, the next step will
be to allocate money. This essential for you to trade online because whether it
is delivery or trading, you need to allocate some money first before you will be
allowed to put in orders.
Once you have allocated money into your trading account, you are set to place orders
once your margin account shows as credited. You can then place orders and check
it in the order book and the status of execution in the trade book within your online
Trading account is the platform for executing buy and sells transactions in equities
and in futures and options. Demat account is the custody account and holds shares
in custody just like the bank holds cash in custody. Let us look at some key differences.
The trading account entails the following steps to make it function smoothly and
meaningfully for the customer.
Introduction to Trading Account
Online Trading - An Overview
Basics of Stock Trading in Share Market
How to Learn stock trading in India?
How to Start Trading Online
Beginner Guide to Start Online Trading in Share Market
How to Open online Trading Account Online in India?