Trading account is similar to bank account. It is platform for investors and traders buy and sell stocks through online. Trading account we use for trade financial products like currency, shares, bonds, securities, mutual fund etc.Trading account works as intermediary between demat account and saving bank account. In order to trade in stock exchange we have to open trading and demat account with registered broker. These both account linked with bank account. if we want buy shares of a company, first we have to transfer fund to trading account.
After brought the shares it is hold in demat account. If we sold the shares it will debit from demat account. After the transaction we can transfer fund to our saving bank account. Some brokers gives choice to transfer funds from trading account to saving account within day, some brokers takes two days its depend on brokers.
Trading account is easy to trade without any help from broker or financial adviser. To open trading account you have to contact registered broker. They will assist you to open trading account. Once we open trading account we can trade in share market.
Shares holder can handle their from anywhere using computer. Stock Broker gives login ID and password to trading software, browser or mobile application. We can get one some benefit in trading account from brokers.
How to place order in trading account
Once the open trading account brokers will send login details to your E-mail ID and registered mobile number or we have to contact broker to get login details. In place the order we have to login trading account through using share brokers given login details. After open trading account first you have to transfer funds to trading from your linked with saving bank account.
Once credit fund to your trading account. First you need select stock exchange (NSE or BSE majar stock exchange in India) after select the exchange then you want select script, quantity of shares and confirm it will go to stock exchange through brokers.Then trade executed in stock exchange.
What are the benefits in trading account?
We can access trading account from anywhere, Traders can control their share using trading account instead depend on brokers. No need to contact financial adviser to trade in market. Share brokers gives cash exposure to trade huge amount of stocks on blue chip stocks.
If we want buy shares not necessary carry financial physical certificate. share holder can track their last traded history to avoid mistake. It will helps watch current market moment in market. we may get receive latest market update and not necessary to maintain ledger balance we will get weekly, monthly statement from brokers.
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