In the field of stock market trading matters a lot. Considering the pros and cons, one can decide if he wants to go for an intraday trading or delivery one. In the intraday, the client needs to pay a little amount, and the broking company can offer some credit so that he can carry out the trade of much higher volume than the provided margin money. The account of the trading is settled on the same day as in trading account while the delivery based trading needs to have purchase and sales of shares on different days.
For a trader, there are two options to have a trading account. It is important to note here that every trader needs to have a demat and a trading account. It can be opened with any of the service providers whether he is a stockbroker or a franchisee of a stockbroking company. The client needs to furnish his identity as well as address proof and banking proof. As there are many brokers in the market one needs to check the best brokers in India that can offer numerous services including good credit and effective customer care. The client can get an online or offline account opened with the stockbroker.
The online account: Many times this account is used to counter the competition in the market also as the broker can offer low brokerage account. In this account, the client needs to operate the account himself only. He needs to have a smartphone or a computer with the help of the internet. Here the broker does not need to extend his support to the client in terms of placing the order or execution of the same as the client is supposed to do all the transaction himself only.
The offline account: In this account, the brokerage is rarely compromised as the broker needs to offer service to the client regarding the transaction. For this support, he offers a relationship manager or a bolt operator with the help of which the client can carry out the trades. The concerned person also manages the account regarding the balance, settlement, and billing. In many cases, the operator also updates the client about the market condition that can help the client to have an accurate trading strategy.
The terms of trading:
There are various terms such as margin money, limit, stop loss and profit booking are used in the market. The margin money is the amount which the client has to pay to the broker before beginning the trading. The limit means various limits such as buying shares of the specific company at specific rates and hence one can set the limit so that as soon as the price hits the limit, one can buy or sell the shares.
The stop loss is a limit only which is set when the market is going down, and one wants to safeguard from loss. The profit booking is an inverse limit than the stop loss when one just wants to book the profit.