Online Equity Trading Is AnEasy Way To Save

The equity trading is just like trading a commodity. And online equity trading is like online trading of commodities. The difference is, you can purchase your commodity online from anywhere or from any retailer, but for equities the trading is located at the stock exchanges only. And the market is regulated by the statutory bodies like SEBI in India. The control of SEBI is authorized by the sweeping powers of SEBI. If during trading the trading period any abnormal behaviour is noted against a particular stock or stocks, as an unusual volume of the transaction the trading mechanism triggers an alarm and the transactions are suspended to stop foul play.

The Demat concept

The trading of securities online is an easy way to handle the investment portfolio. It can be done through authorized firms and equity trading in india is now made easy. You must open an account with a trusted house for online trading. In fact, you need three accounts to start online trading, one savings bank account, one Demat account and one trading account. Demat or Dematerialized accounts are the electronic stock of your securities. Previously your shares were a bunch of papers you physically possess, and to sell you have to sign and hand it over to your broker to sell it. For more information visit us : http://www.plindia.com/equity-trading.aspx

Method of transaction

The concept of Demat account is just like SB account. You can open as many Demat account as you like as you like though it will complicate your transaction, you cannot open more than one Demat account with same house. Suppose you have a Demat account with your existing bank and transacting through a broking house. You linked your Demat account with the broking account, now the securities you purchased through broking house can be credited to your existing Demat account. But, you cannot sell your securities held with your bank through the broking house online. You either transfer the security to a Demat account with the broking house or transact through Slips, just like a cheque and is called offline transaction.

The online trading

There are broking houses that offer you facilities for online trading in security exchanges. Though, the online facility is limited to BSE and NSE only. Incidentally, BSE is the Bombay Stock Exchange, and NSE is National Stock Exchange. The broking house will allow you applications by which you can transact view and keep track of your account even through your mobiles. These broking houses will offer you integrated trading facility by which you can integrate your trading account. Demat account and bank account. The house will provide the payment gateway, trading calls like short term calls, intra-day or long term calls via SMS or on-screen.

The secret of investing

There are certain thumb rules you must observe to survive. The market in the mathematical term exhibits ‘butterfly effect’. The term is popular in chaos mathematics, to describe weather effects also to understand the market volatility. It means the market is so closely linked that a political unrest in Europe can cause your prime auto stock to crash. It’s a dominos effect, and you must be strong enough mentally and psychologically to hold the stock you know has strong financial backing. Your investment is to secure your future. And the crash effect will smooth out. If you want to play with the market, i.e., speculate you must do it from your risk fund. And don’t mix up your risk fund with your investment portfolio. Keep a balance and don't go overboard.