Online Share Trading

Though online trading is easy and profitable in some ways, it can be a nightmare for the person who is doing share trading online for the first time. For this very reason it is very important to have basic knowledge about the online trading in India. So this is necessary to know first of all about the stock market, about share and then about the trading of shares.

Stock Market: This is the place where the listed companies' shares are brought and sold. There are many Stock Markets in India NSE and BSE are one of the biggest Stock markets.

Shares: Share is a finite and similar portion of the company capital. In financial term is can be called a "unit of account" for various financial devices.

How to do online share trading

• There are many online brokers in India. These brokerage firms are supposed to get approval to facilitate share trading from the Indian Financial Government Bodies. Few of the well known share brokers are HDFC, ICICI, UTI, SBI etc.
• At first you must have a trading or demat account in any bank. Hence ask to your bank where you have saving account that you are interested in share trading and need to open the demat account. After following few procedures and filling up few forms you will be provided with the facility to have a demat account. All the shares you buy online will be kept in your demat account.
• You can operate this Demat Account online as you will be provided with the User name and Password anyone that has your User name Password can access your Demat Account.
• There are many financial institutions that provide broker and demat account services together. But this is all up to you if you wish you can have the both separately. The share you buy from the online broker will be kept in your Demat account and the cost of that purchase will be deducted automatically from your saving account.
• What you need to do is to wait for the opportunity to sell the bought shares on the higher price.
• Whenever you wish you can sell the shares through online trading system. While you sell the share will be debited from your demat account and the sold price will be credited to your saving account in few minutes.
• On the profit you make the Bank will be deducting the per-described TDS amount as well.