Showing posts with label FOR BEGINNERS. Show all posts
Showing posts with label FOR BEGINNERS. Show all posts

August 28, 2009

>HOW TO TRADE ON-LINE

1. Log on to the Broker's website.

2. Register yourself as a client.


3. Fill in the client broker agreement on tamp paper.


4. Log on to the broker's site using secure user ID and password.


5. The market watch page will show real time data.


6. Trade shares directly by entering the symbol of the securities.


7. The brokers' server will check the limit in the on-line and the demat account for the number of shares. And execute the trade.


8. Usually the order is executed in about 20 seconds and you get the confirmation.


9. The broker will send one e-mail confirmation and printed contract by mail.


10. On the settlement day the demat and bank accounts will automatically get debited and credited.

>E-TRADING

One of the most revolutionary things to happen at the end of the twentieth century is obviously the revolution in communication through internet. The Net has become the way future business is heading towards. It is therefore no surprise that the Net has made a big difference in the way stock markets around world will function in future. Developments like screen based trading in the place of traditional trading ring and the dematerialisation of the shares, have played a big role in making E-trading a reality. Without these developments E-trading a reality. Without these developments E-trading would not be as effective as it is now. Due to this new innovation one can now operate in the stock market from the privacy of one's home or office. The transactions can be put through in a matter of few minutes, to one's satisfaction. This method guarantees complete secrecy in the transactions. Various portals like Indiainfoline, Sharekhan, ICICI, capital markets have come up in the last few years. These portals r full of information about almost 5000 companies listed on the stock exchanges. This enables the investors to study the companys' performance, before making investment decisions. They also provide latest information concerning the companies, which is essential for the investors to make decisions. TV channels like CNBC also contribute a great deal in this effort by reporting latest happenings alongwith the necessary analysis by experts and by telecastinglive the investor meets, allowing investors to get first hand information from the various company's officials.

The preconditions for trading on Net are:

1. A personal computer with net connection

2. A registered account with a broker

3. A demat account
4. An account with a bank with payment gateway or online banking facility