Everything is online in the world. Trading in the share market has become a good investing way for traders. With the world going digital, it is important to know the structure and features of trading shares online.
Are you planning to invest in the share market? The Share Market in India is very volatile and keeps changing every day. Even though the share market is considered to be risky, but if you invest and plan well then the returns that you get are really good. There are a lot of traders who invest in share markets to get fast cash. These days a lot of traders have started investing in online trading market.
The way you require a bank account in order to start your savings account, in a similar manner you require an online share trading account in order to start trading with stocks. This account is said to be similar to any normal bank account. The only difference here is that all your required securities like shares, bonds and debentures are deposited in electronic.
Trading the online share market
When you trade in a share market, you invest in online materials. Following are some of the necessities that you need to take care while carrying out transactions.
In our country dematerialized securities are not available on paper but they are just a mere certificate. A Bank or any other Depository Participant can easily convert securities into electronic with the help of a Demat Request form. In such a way you can carry out dematerization in our country. This is done online by filling out forms.
Whenever an investor transfers his/her shares, he/she has to fill up a Delivery Instruction Slip and Receipt
Instruction Slip. This is done so that they can sell or buy securities later in their life
Investors who have demat trading accounts can take up loans against securities that include various debentures, shares, bonds, mutual funds and other units. These securities are offered as warranty amount to the lender by the borrower and you can get your loans.
An online trading account opening requires internet. Since, a demat account is electronic in nature it can be easily accessible. You can access these accounts on your smartphones and laptops.
When you open an online account, you are given the facility of Speed- E. This made available to you by the NSDL. With this mode you are allowed to send out instruction slips instead of sending papers.
A huge amount of population in our country look forward to save and invest high on shares and online markets. It is much easier to carry out transactions than the normal mediums. Also you are aware of all the ups and downs that happen in the markets. When you step inside the online market, you will get to know its vastness.
As mentioned above, it is quite important about an online share market. Sunita is a professional with good market knowledge.