Trading Account : Meaning, How Does It Work, Advantages

 


Stock market trading is now very convenient even for an ordinary man, owing to the advent of new digital technologies and subsequent adoption of the same by the stock exchanges and the Securities Exchange Board of India (SEBI). This digitalization is successful in improving the overall experience for investors and traders, and has transformed the complete process of stock market trading. Today, it is possible to do everything online, right from opening a demat account, a trading account, to carrying out the entire trading process itself.

Also read:- What Do You Need To Know About Demat Account Today?

It has also aided in reducing the settlement period from the initial T+14 day cycle to just a T+1 day settlement cycle, (effective January 2022 onwards), which has reduced the chances of frauds and other malpractices to a bare minimum. However, with the growing technology, we also need to keep ourselves updated with the new rules and regulations which are becoming mainstream now. One such change is the digitalization of the trading account. In this article, let us see what a trading account is, how it operates, what are its advantages and the extended benefits which come along with a trading account when you open it with a broker.

Also read:- Online Trading Account – Definition And Meaning

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