There are people who hunt for avenues from where some extra income can be generated, but for many of them, it is not possible as either they lack of time or money as well as capacity to take the risk. However, only the stock market is the field where one can go for trading in the limited capital and with calculative risk. A trader needs to have a firm knowledge of the field to have successful trades and if one does not has such knowledge he can gain the same with the help of various courses that are offered by some of the experts here.
For a trader, a demat and a trading account is the primary requirement, and in case one has no such account he can go for the same to any service provider and ask for the opening of an account. The trading account can be opened as an offline one or online. Those traders who want to trade on their own prefer to go for the online account where only they can trade and that too urgently without waiting for the call to the operators the way it is done in an offline account. The funding and opening of limit are also managed by the client here only, and he does not need to share any of his personal information to the third party.
A trader needs to pay a brokerage amount to the service provider for his services offered to the client. The rates of brokerage vary as per the service provider and client agreement and hence there is no standard rate in the market. However, those clients who have a huge turnover on regular basis search for the best discount broker in India so that good amount can be saved as part of brokerage.
The trading and transaction:
The trading in the stock market is easy, but one must learn how to set the limits as well as place orders. The trader can check at his end which segments he needs to go for the cash segment or derivative one. The client needs to see his capacity of bearing risk as well as the investment of capital and time frame. The cash segment has two options which are delivery and intraday in which the trader can trade while in the derivatives there are options and future in which the contracts can be purchased or sold by the client. In the intraday trading, the loss or profit can be known as soon as the trading session ends while in the delivery based trading one has to make the full payment to the service provider within the prescribed time. In the futures and options, there are various contracts available with different expiry dates and values. The client can choose any of them and create a position as per his strategy but must square off the same before the expiry of the contract. The value of the contract can go up or down as per which the loss or profit of the trader is counted.