Share Market Basics: Learn About Trading and Stock

In today's technological era, you can discover investments with great potential online anytime anywhere. Authorized stockbrokers provide their clients with stock trading applications that make online trading more convenient. What to Consider For Best Trading Apps Safety Measures: The SEBI (Securities Exchange Board of India) keeps updating the rules and regulations for stock trading in the interest of investors. There are specific safety measures that brokers need to follow to secure their trading apps. You can check the broker's official website to check updates on their safety measures. Segments  Check the segments in which a trading app allows you to trade. There are different segments of the stock market - Equity, Commodity, Derivatives, Foreign Exchange, and others. You may need to activate trading for specific segments. User Experience Consider the ease of using a trading app. Existing users' reviews on the official website of the broker can help you to know how well...

The stock market holds immense potential for growth opportunities for people interested in investing or trading. To make the most efficient use of the stock market opportunities, new investors must know the steps to start trading in the stock market. Here is how one can begin stock trading in four easy steps: Step 1: Choose a stockbroker- Even before a new investor enters the stock market, he must select a stockbroker. There are various stockbrokers in the market these days, select the one offering the lowest brokerage cost and an advanced share market app to facilitate trading activities. Some leading brokerage houses open demat and trading accounts for free.  Step 2: Open demat and trading accounts: An investor needs to open a demat and trading account with a brokerage house. A demat account stores the shares and securities the investor purchases and a trading account facilitates trading activities. It is advisable to keep the documents required for account opening (address pro...

An online demat account offers the advantage of speed and convenience to stock market investors. A demat account came into existence under the Dematerialisation Act in 1996 as a solution to the hassled offline trading system. Investors using a demat account are allowed to do screen-based stock trading. Investors or traders can buy, hold, and sell their financial assets anytime in the online trading system. Demat accounts facilitate stock market investors with an online and safe repository.  You can open the best demat account with a stockbroker registered with the capital market regulator, the SEBI (Securities Exchange Board of India), and central depositories in India - CDSL (Central Depository Services Ltd) or NSDL (National Securities Depository Ltd). Numerous stockbrokers facilitate their clients with low-cost and quickly-activated demat accounts. Demat accounts can be opened digitally without time-consuming paperwork. Some of the evaluative measures to select the best demat a...

 Mobile trading apps give multiple trading options with an easy-to-use interface. Find opportunities in stocks, bonds, government securities, digital gold, mutual funds, exchange-traded funds, and much more on these apps.  How to Invest via a Trading App To start investing using a trading app, you should have demat and trading accounts with the stockbroker. The broker will share a link to download the trading app via SMS or email once you sign up or you can find it at Google Play Store or Apple Store.  Once downloaded, you need to enter your user ID, and password received on your email ID from the broker and PAN details to log in to the app.  You will see a watchlist where a few stocks are already added. In the best trading apps , you are allowed to make your watchlists for different segments and sectors.  You can get options to check top losers and gainers, 52-week low/high, active volume, IPO (initial public offering) performance, and various other informatio...

Margin trading requires you to take a loan from a broker for buying stocks. The margin requirement is like a loan and interest is to be paid. Margin trading enhances the purchasing power of the investor.  You can increase your profit-earning potential using margin trading. Margin trading is advisable for investors who want to take advantage of the price fluctuations in the stock. If you wish to start margin trading , you need to place an application with the broker. An investor must always keep a minimum margin with the broker. The broker can square off a position if you do not maintain a minimum balance or meet the margin call. Margin trading helps you to capitalise on leverage and amplify your trading profits. It provides flexibility to the investor in terms of tenure. Only authorised brokers are allowed to trade in margins as per the Securities and Exchange Board of India (SEBI). Positions against the margin can be created either with the help of cash or by keeping the stocks as...

The stock market is the place where sellers and buyers come together to trade in different financial instruments. A stock market comprises multiple stock exchanges. For example, NSE and BSE are the two major stock exchanges in India. The price movement of top 50 companies listed in NSE are tracked by Nifty50 and the price movement of top 30 companies listed in the BSE is tracked by SENSEX. The platform for trading is provided by the stock exchanges and the trading activities are managed by a regulatory body like SEBI.  The share markets are of two types. The primary market is where the companies register to introduce their shares in the stock market. The secondary market is where investors can buy and sell these shares once the IPO (Initial Public Offering) of a company gets listed. You must have a Demat account to bid for an IPO. To understand the working of a stock market, you must understand the role of different parties involved in trading like stock exchanges, brokers, regist...

A demat account holds your shares and other securities whereas a trading account proves to be useful while buying and selling them. While having a demat account is essential to trade or invest in the stock market, you must know about the charges associated with it. The demat charges include AMC, custodian fees, account opening charges, and transaction charges. To open a demat account you need the assistance of a SEBI-registered broker.  Compare the brokerage, get an idea about their UI through user reviews, and analyse their support services, and credibility before opening a demat account . It is possible to open a demat account online by visiting the website of a broker. After visiting the website, you can fill an online account opening form and submit the necessary documents along with it. The broker will verify your documents via video conference or schedule an in-person verification round.  Once the documents are verified, you will be asked to sign the contract documents. ...

  Dematerialisation refers to the process of converting physical shares into electronic format. When the shares or other securities are available in electronic form, it becomes easier to transact in them. Dematerialisation is necessary because the manual process of trading has been outdated. Also, dematerialised securities provide far more convenience and safety to your financial holdings. The transactions can be carried out safely when the shares are available in electronic form. The other benefits of a Demat account include the elimination of thefts, damage, and other risks associated with physical securities.  The transactions made using a Demat are safe as the Demat account providers encrypt the data and offer an extra authorization process to ensure the safety of the transactions. You can also appoint a nominee to trade on your behalf in your absence. Dematerialised shares negate the need for paperwork and facilitate a faster and more convenient trade settlement process....

A demat account acts like a bank vault or repository for your shares and other financial securities. You must also be aware of different types of demat account such as BSDA, regular demat account, repatriable, and non-repatriable demat account before opening one.  A demat account facilitates ease of trading i.e. buying and selling securities becomes easier if you have a demat account. Transferring shares from one demat account to another is also possible. You can also use a demat account to monitor your holdings and investment portfolio. It can be accessed from anywhere from a laptop or mobile these days. Moreover, you can hold different securities in it and it eliminates the costs like stamp duty that is associated with physical or manual trading.  Online trading with a demat and trading account is easier, and it also saves our time. The information regarding upcoming IPOs can also be traced via a demat account. Corporate benefits like stock splits, dividends, bonus shares, ...

A demat account is a short form for dematerialised account as financial securities are held in dematerialised i.e. electronic form in it. A demat account holds different types of securities like bonds, mutual funds, stocks, ETFs, and more. It keeps your investments safe and demat account providers also keep upgrading their security features by introducing data encryption, 2-way authorization, and other technologies.  It is possible to buy or sell shares in odd lots from a demat account. The updates of upcoming IPOs can also be retrieved through a demat account. Corporate actions like stock splits, bonus shares, dividends, etc. are also credited directly to your demat account . Regular, repatriable, and non-repatriable accounts are the three basic types of demat account. The BSDA (Basic Services Demat Account) is a type of regular account that waives off your AMC (Annual Maintenance Charges) if the value of your investments is below Rs. 50,000.  A demat account plays a key role...

Opening a demat account is mandatory to invest in the stock market. A demat account acts like a vault for multiple securities including equities, ETFs, mutual funds, corporate bonds, etc. By providing exposure to multiple financial instruments, a demat account contributes significantly to your wealth creation efforts. As it assists you in maintaining a diversified investment portfolio, it also helps to balance the risks associated with money market instruments. The option of choosing a nominee while opening a demat account allows you to provide the benefits of your investments to your legal heir. You may also convert your physical shares using a demat account and transferring demat shares from one account to another is also possible.  Also, it is possible to open a demat account online these days. Ensure that you have all the documents that validate your identity, address, bank account information, and income in place while opening a demat account. Factors like brokerage, ease of ...