The world of business is very vast and full of ample avenues where people who have a business mind can earn and grow pretty well. One of the many options available is share trading. Numerous opportunities are available for everyone, but there are a few basic things that one needs to know before getting started. Knowledge of market and trading skills are the most important of these basic things — people who know how to place an order and when they can earn a huge amount in this market. However, completing a few formalities comes before going for trading in the market.
Opening of account and trading:
Having these accounts is important for oneself in the world of shares. People whose interests lie in investing in shares of different companies can go for the demat account only as they don't have a need for trading. Whereas, for traders who want to go for regular trading, it is necessary to have a demat and a trading account as well. Those who just explore the market have a very obvious question, who is the best broker in India as there are many such service providers available who can help him get the account opened. It is important for people to know here that there are only two authorities who have the allowance of opening a demat account. These authorities are NSDL and CSDL. Hence if one wishes to open a demat account, he/she has to go with one of these authorities only.
How to open a demat account?
Keeping the shares in custody is the use of a demat account. The reason behind the demat account called demat is because it can only have the shares in entry and not in physical forms or copies. For this account, one has to pay some charges and provide the concerned broker with required documents as well. Thes documents include ID proof, PAN card, Aadhar Card, Address proof and cancelled the cheque. One also has to provide a cheque for margin money in case of a trading account.
After their respective forms are filled, and all requirements are met, both the demat and trading accounts get opened after a few days from the day of form filling.
How to trade in the market?
Intraday trading and delivery based trading are the two options available to traders in the world of shares. A trader can opt for either of them in the market. However, the majority of traders opt for intraday trading as it allows them to earn money in a short span of time. One needs to know here that he/she is needed to buy or sell the shares in the same session and transaction cannot be carried forward. If the transaction is forcibly carried forward, the brokerage applicable to it becomes delivery brokerage and not intraday one. Since the delivery brokerage is higher than that of intraday one, a trader needs to be careful while trading.
Those who truly want to earn money in this market must check the background of the concerned companies and not fall for tips being circulated in the market. Hence, research is the only option that can help one hit the right trade at the right moment.
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