How To Purchase Shares ? Your Guide To Online Trading
From un-regularised paper trading to a completely monitored online trading, the Indian share market has come a long way. Online trading is not only very convenient but also transparent. Whether you are in the share market to trade or for investing purposes, you can open an online account with your broker and trade with ease.The first and foremost requirement to start online equity trading is to select a stockbroker and open an account with them. The stockbroker should be registered. You should check the facilities that they offer. Brokers also guide you on which shares to buy.
Do check their track record and find out how good their equity trading tips are. You should also check the brokerage that the brokers charge. The brokerage rates are very competitive and some even offer a zero brokerage account.You can place a market trade, a stop loss trade and a limit trade order on the online platform. There are other forms of orders like bracket trades, trailing stops etc. Though it may take some time for you to get comfortable with placing these orders online, it is a very simple and easy to use platform.Your brokerage firm will also let you trade on margin. This means that you can borrow money from your stockbroker to trade. However be careful that you manage your risk before trading with the borrowed money.Online platform also lets you short stocks. In the Indian equity market, you need to cover your shorts within the trading day i.e. you are not allowed to carry forward your shorts. If you trade in the futures market you get the privilege to take positions and carry the shorts overnight.The online trading platform also lets you have access to the technical charts.
This can help you take trades if you know how to read the candlestick charts. Most advanced online trading platforms give you access to various technical indicators. Some even give you the flexibility to take trades directly from the charts.Online trading is definitely a big step in the stock market world. Today you can trade on the go, be it from your laptop or your mobile. This gives you the flexibility to trade the stocks yourself without worrying about calling your broker each time you need to place an order.
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