The trading in the stock market fascinates all those who love to have some additional income than the regular sources. There are many reasons behind this attraction. Low capital investment and limited risk are the primary attractions among all. However, there are some important factors that a trader needs to consider before starting the trading in this market. The foremost important factor is the knowledge that one needs to have. It helps one to buy and sell certain shares at a specific time. The moment of buying and selling, hold great importance in trading.
The requirements for trading:
To carry out the trades one needs to have a trading account with a licensed broker or a franchise holder of a broking company. One also needs to get a Demat account opened with either NSDL or CDSL. The trading account does not carry any fixed charges while the Demat account usually has a fixed charge to be paid every year. For the trading account, one can go for any of the options which are online trading account and an offline one.
For every trade carried out in the trading account, the trader needs to pay certain brokerage to the broker or broking company. The rate of brokerage is decided at the time of opening of account only. Hence those who love to have trading on a large scale prefer to have a broker who offers the lowest brokerage in India. The brokerage can be a fixed amount per trade or a percentage of the turnover. In regular practice, the broker does not offer low brokerage as it is the major source of his income. He needs to get that income to spend on a salary of his employees, pay utility bills and also earn some profit for him. However, there are some cases where the broker becomes ready to offer low brokerage. Some of these cases are mentioned here.
There are online and offline accounts in the market. A trader can go for any of these accounts as per his needs. If he can provide sufficient time to the trading and market and knows how to trade, he can go for an online account. Here he needs to have a computer or a smartphone that needs to have an active internet connection with the help of which the trader can place the orders and also monitor the movement of the market.
Those who love to have the trading as a side business, the offline account can also be of good help as here the trader can have the help of the terminal operator or relationship manager. The client can call the operator and know about his account and market situation. The client can also ask to place an order as per his requirement and set various limits that can help him to make a profit or reduce loss. The operator follows the instructions of the client and takes necessary actions. He also updates the client if the order is executed and the client has made profit or loss.