Online share trading involves buying and selling of stocks through online platform. Using the online share trading account, you may buy or sell share stocks, mutual funds, bonds, and other securities easily, without the need of intermediate broker or agent.
Online Share Trading for Beginners
Share trading can be profitable if investors know the fundamentals of trade. The best way for a beginner to succeed in the share market is research. Research the best stockbroker who charges a low commission and yet provides the best services in terms of user-friendly interface, customer service, etc. Also, research your stock picks before placing a buy/sell order. Look at a company’s EPS, financial statements like P&L accounts, profit margins, future growth plans, etc. before investing in their shares. In the beginning, avoid highly volatile types of instruments, like futures and options. Another helpful tip while trading in the share market is discipline. Set your desired profit and stop-loss margins. Stop trading when you’ve reached these margins. It helps you to limit your loss as well as prevents you from being too greedy.
Instruments Traded in Indian Share Markets
Instruments ranging from equities and IPOs to derivatives are traded at the stock market. Different instruments are traded by various online trading exchanges. The National Stock Exchange (NSE) and BSE Ltd. trades derivatives (Interest Rate Derivatives, Equity Derivatives, Global Indices Derivatives and Currency Derivatives), capital market (mutual funds, IPOs, traded funds, equities, stock lending and borrowing, debentures), debt market (corporate bonds, retail debt), etc. MCX Stock Exchange Limited (MCX-SX) deals with capital markets. Multi Commodity Exchange of India Ltd (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) offer commodities trading like gold, metals, agro-commodities, bullion, etc.
Things You May Also Like to Know
Can I start share trading online once my account is activated?+ -
Yes, you can start trading online as soon as your account is activated provided you have the funds in your bank account or stocks with your depository participant. Once your trading account has been opened, you can trade as well as transfer your holdings, if any, to your demat account. After submitting the Account Opening form along with the identity and address proof, a verification process is initiated. You will receive a call or in-person visit by a representative for the verification of details. On verification, Angel One will send a welcome kit containing confidential information like your user ID and password. Login to your account and begin trading. You can buy/sell securities as you wish.
Can I trade when markets are shut?+ -
Yes, you can trade even after the market closes, provided that your broker allows it. Most brokers now allow after-hours trading for customers with an online account. The stock market in India opens at 09:15 hours and closes at 15:30 hours. The pre-open trade session is from 09:00 to 09:15 hours. The stock market is open only on weekdays. Those who wish to trade before or after the stock market hours have to place an After Market Order (AMO). All you need to do is log into your online trading account and chose the AMO option. This option is meant for investors who do not have access to the stock market during trading hours, for whatever reason.
Can I own more than one demat or trading account?+ -
Yes, you can have more than one demat or trading account with the same broker or any other broker. It is a legal and preferred way to invest in markets. Some investors hold various accounts to segregate their holdings according to their various financial goals. Some may have a retirement account, commodities account, margin account, etc., based on their trading strategies. If you are an active Future and Options trader, having multiple accounts works in your favour as you can have a long position in one trading account and short position in another. If either of your positions moves against you, you have the other one to fall back on. However, you may apply for an IPO only once. So be careful of this aspect while holding multiple accounts.
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