Stock trading refers to buying and selling of stocks so as to benefit from their movement
. Now-a-days traders have the option to trade over the Internet besides, calling up the broker and giving instructions. All you need is a brokerage account for online stock trading . Once you have it you then need to research different companies and place your bets accordingly.
What is online stock trading?
Earlier stock market trading in India used to take place through open outcry sans any use of IT. This was a time consuming and inefficient way to do trades. In a way it was imposing limits on trading volumes and traders were not getting the best prices. In order to overcome this problem and provide efficiency and liquidity in stock market trading in India , both NSE and BSE introduced a nationwide, on-line, fully automated screen based trading system, where a member can enter into the computer the quantities of a security and the price at which he would like to transact, and the transaction is executed the moment a matching sale or buy order from the other party is found.
How to place orders with the broker?
You may go to the broker's office or place an order over the phone/internet. Pretty soon you would also be able to trade through your mobile phones with the help of specialized software.
How does an investor get access to internet based trading facility?
There are many brokers of the BSE & NSE who provide online stock trading facility to their clients. Internet based trading allows an investor to buy or sell securities via internet which can be accessed from a computer or laptop.