uTrade Algos
In the traditional stock trading mechanism, stocks were physically auctioned, introducing significant risks and potential for manipulation. This era was marked by scams and market chaos, making it exclusive to the wealthy. With the advent of online trading, accessibility has increased, and individuals from various backgrounds can now easily participate in the stock market. The open-source nature of knowledge and improved accessibility have democratised online trading, allowing more people to open investment accounts and engage in trading activities.
Table of Contents
Defining Online Share Trading
Online trading refers to trading in publicly listed companies through an online broker on the stock exchange. For trading stocks, futures and options, commodities etc. you will need a stock broker that offers you more than just a trading platform. One platform offering much more than just trading is the Share India stock trading platform. Here, you can use tonnes of tools and technology to experience smooth trading in the Indian stock market.
In online share trading, one primarily gets stocks to buy or sell in the public market. In the financial market, when a company transforms from private to public, it releases shares for the public to trade. One of the main reasons for a company to go public is to seek funds. As a company lists for the first time it launches the IPO (Initial public offering). However, before listing shares, the company must apply for an IPO and submit financial documents to both the SEBI and the stock exchange.
Trading Explained
One can profit when the value of the company shares you own rises. This method of making a profit is known as trading, where the usual technique is to buy low and sell high. A stock also provides regular dividend income as the company shares profits with its shareholders.
Through online stock trading, one can invest as a positional trader or an intraday trader. A positional trader buys stocks for the long term and knows of their position when the stock will make profits. Buyers and sellers work on the same day in intraday trading. Alternatively, the intraday trader buys stock in the morning and sells before the market closes. If the intraday trader forgets or does not sell their intraday stocks, then the shares will automatically square off, and you can make a profit or loss as per your trade.
Access to Online Trade
Nowadays, stock brokers have the option to trade from their smartphones or computers. One can trade online from a share broker’s website or an online trading app. A broker offers to open a Demat and trading account. The first thing that is needed is to link the two accounts with each other, but if an account is opened with one broker, i.e., Share India, the Demat and trading will be free of cost.
An online broker is a medium between a trader and the stock exchange. The broker charges in online trading are pocket-friendly. You can trade with minimal fees and a small amount of capital. Unlike in the past, online trading can begin as low as the price of a stock, which can be a penny or more. The stock broker must be SEBI-registered. A SEBI is an Indian stock market regulatory body that ensures a proper trading mechanism for traders, companies, and stock brokers. SEBI ensures that there is no manipulation or scams which can disrupt the function of the stock market.
Major stock exchanges in India are:
- National Stock Exchange (NSE)
- Bombay Stock Exchange (BSE)
Method of Online Trading
- To start online trading you need to do eKYC by submitting your PAN card, Aadhaar card, and bank details.
- Through your Demat account, you can easily access the stock market and easily make essential decisions for your trading. The stock trading app provides you with online features such as indicators, advanced charts and technical tools to trade in the stock market. You can start trading in just a few steps, and learn how online trading works in India.
Conclusion
Online share trading has revolutionised the way people participate in the stock market. In the past, stock trading was limited to physical auctions, making it exclusive and challenging for the average person. However, with the advent of online trading platforms, individuals can now easily access and manage their investments from the comfort of their homes. The Internet has democratised stock trading, providing a level playing field for both seasoned investors and newcomers. This accessibility, combined with the wealth of information available online, has made online share trading a more inclusive and transparent endeavour for everyone.