The stock trading account: A need for every broker

Share market is known for a number of things. The most important among all the things is the opportunity it offers to the traders and investors. There are many companies in the market which in the share prices of which one can see regular momentum. Hence those who prefer to trade in the market can go for the share trading in the shares of these companies. The traders who want to earn some profit on regular trading can trust such companies and trade in intraday as well as delivery based trading.

The trading:

For a trader who is interested in trading on a regular basis, needs to have at least one trading account and one Demat account. For those who do not have these accounts can go for any of the stock brokers in India and apply to open an account. He needs to check various charges of account opening as well as trading. The stockbroker offers an account opening form that one needs to fill the form and submit some of the personal documents of one on whose name the account needs to be opened. The documents required here are identity proof and address proof of the person as well as the PAN card. One also needs to provide a cancelled cheque of the bank account that he needs to link with the trading and Demat account. In few days both the accounts get opened, and after depositing the margin money, the trader can initiate trading in the market in cash or derivative segment as per his choice.

The accounts:

For any trader, the brokerage charge is a point to be seriously considered. These days one can go for either and offline trading account or an online one. However, some brokers offer discounts on the brokerage of the online account and hence to save the expense of brokerage one can go for it if he is comfortable with the same.

However, for the trading with an online account, one must note that he needs to have a computer or a smartphone. If one uses a computer, he can log on the site while on the smartphone he needs to have an application for the same. In any of the case, it is mandatory to have an internet connection active on the device. One can view the rates of the shares and also set different limits such as profit booking as well as stop loss.

If one wants to trade in the derivatives, also he can view different contracts with their prices and expiry date. He can hence buy or sell contracts as per his strategy and create a position and hold for some days. However, it is much required to square off the position of the same before the expiry of the contract. Here in derivative one needs to trade only if he knows the price trend and expects the movement. The profit opportunities are higher in this segment but at the same time there are also chances of loss, and hence one needs to be much careful.

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