Trading in the equity market can be an overwhelming task, especially if one is not clear with the equity trading basics. These include:
If the company is issuing shares for the first time (through an Initial Public Offer), it is known as equity investment through the primary market. Once the IPO is closed and shares are allocated, the shares get listed on the exchanges. Subsequently, trade (buying or selling) takes place in the secondary markets i.e. stock exchanges. Exchange based equity trading in India is available through NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
Forms of equity trading
Spot (or cash) market, Futures market
Settlement cycle of trades
Indian exchanges follow a T+2 cycle for settlement of trades. Within two days of the trade being executed, the buyer receives the shares (credited in his/her demat account) and seller gets the proceeds in the bank account (which is linked to his/her trading account).
In order to start your equity trading journey, you need to get in touch with a broker or broking firm. Your broking partner will help you to open a Trading and Demat Account, which are pre-requisites for equity trading in India. Trading Account is the account through which you can place your equity trading (buy and sell) orders. Demat Account is the bank for your shares and investments. It holds your shares in a digital or dematerialized format. TradeSmart offers you the facility of opening these accounts at extremely nominal charges.
A good broking partner can radically change your trading experience. They not only help to execute your trades but also support with analytics and data to take the right decisions. TradeSmart has one of the best equity trading platforms in the country. Some things that to keep in mind before you trade in equity-
It is important to clearly chalk out your risk parameters. Outline how much is too much (trading losses).
Set your “stop loss” and “profit targets”. The first will be your insurance against volatility and the latter will help you churn the capital effectively.
Do not lose focus from the associated costs (brokerage, statutory charges, etc.)
Do not fall for market “hot tips” or rumors without in-depth research of your own.
TradeSmart is your one-stop solution for your online trading needs (equity, future and options, currencies as well as commodities). While there are numerous equity trading companies in India, here is why you should trade with TradeSmart.
Tradesmart makes use of cutting-edge technology to streamline processes, lower transaction costs and create a delightful investor experience.
TradeSmart ensures highest levels of security for your stocks. Customer’s securities are only maintained in their respective demat accounts and not any pool account.
TradeSmart’s equity broking services have been designed in a way to suit varied types of trades and equity trading(online) needs.
TradeSmart’s services can be availed even when you are on the move. The trading app or the portal can be accessed from multiple mediums such as smartphone or desktop.
Unlike many other trading companies in India, TradeSmart has in place a zero-forced selling philosophy. The team does not trade (on client’s behalf) without consent.
These two terms are used interchangeably in the Indian investment parlance.
The following supporting documents are required:
Equity tradingin India (on the stock exchanges)happens between 9.15am to 3.30pm on all working days. The trading is open from Monday to Friday.
Keep these points in mind while making your equity trading strategy :