The companies accept the deposits from the public and in return offer shares of the company that can help the shareholder to have certain rights. This way those who love to invest in companies can go for a long-term portfolio, and once the amount invested increases as a share value, they can sell the shares and get profit out of it. Hence many people love to create wealth with the help of right investment option in terms shares. There is also another way of earning from the share market which is known as share trading.
In the share trading, the trader needs to have a trading account. The primary concept here is very simple. One can buy the shares at less value and sell them once the price is increased. Hence one can earn profit from buying and selling of shares in the market. Today the market is fully automated, and hence trading is done through computers. The shares are also available in digital form, and hence those who want to hold the shares need to have a demat account. One who wants to trade in the stock market needs to have a trading account where he can buy and sell the securities on the same day. For such services of trading account, the client is charged some amount by the stock trading brokers with whom who may have got an account opened. In simple words, the brokerage is the expense for the client while income for the share broker.
The account type:
The trader can deal in various segments such as cash and derivatives. In the cash segment also there are two sub-segments which are known as intraday and delivery while in the derivatives also there are two sub-segments which are known as future and options. Each of these segments has own peculiarity, and hence one needs to know them before jumping into the world of trading.
- Online accounts: As the majority of the transactions are digitised nowadays, it is important for the online lovers to go for the online account which offers complete freedom of trading to the client. One can watch the market on his computer, and as soon as think that the opportunity is there, he can just buy or sell the shares. He does not need to call anyone or request to place the order. However, here a client must have a computer and an internet connection.
- Offline account: People who are busy with their job or business during market hours need to have someone who can watch the market and place the order as per his instructions. This role is played well by the bolt operator who is an executive of the Broking Company or broker. He needs to be given the instruction of which shares the buyer wants to buy and what all limits he wants to set. The operator goes with the instructions of the client, and once the order is executed, he informs the client about the same.