subject: Open Stock Market Account And Enter The Markets [print this page] Understanding the market basics is very important when you decide to do stock market trading and/or investment. Stock, capital or equity market, commonly referred to as the share market, is a large network where transactions of stocks and derivatives of companies take place. These companies are listed on the stock exchange.
In India, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are the busiest. You will come across terms like shares, equity, brokerage, securities, etc. which should be understood well before hand. Investing in shares essentially means buying shares of a company for the growth of the company and earning profits.
Today the entire platform is electronic and hence youll need a trading, DP a/c and a savings bank a/c along with your PAN to function in the market. It is best to have an account with a broker or broking house. There are two ways how your a/c is usually operated
The individual broker at your broking branch executes trades as per your instructions
Online trading, a DIY method wherein youre given an interface usually equipped with helpful tools by your broker through which you can execute trades on your own
A minimal fee is charged for opening and maintaining your accounts. Experts generally advise investing only up to 25% of your earnings while starting off. Risk only what you can afford to lose.
The Right Broker and Getting Started
Check and compare service fees, stock commissions, reputation, security offered by the broker, etc. when opening an account with a brokerage firm. Changing brokers at a later stage can be costly and time consuming.
You can apply online to open stock market account and the whole application process just takes a few minutes.
Youll need to get acquainted with the brokers stock order screen, analysing and researching with the available tools. A good broker will educate to some extent.
Commodity Trading
Along with holding shares of a company, one can also invest in commodities such as gold, silver and agricultural goods. Prices of these commodities are quoted on MCX and NCDEX. The difference as against stock trading lies in the cheaper margins in commodity trading. Online commodity trading is possible as well.
One can register for an online trading service and get started. Internet based trading services provide detailed analysis and global market trends for investors. Many websites even have faux trading and investing option available which serve as good practice without any risks.
