What is a dormant trading account?

A dormant trading account is one where the holder has not placed any trades for an extended period – specifically, for more than six months. This means there haven’t been any transactions like buying, selling, or transferring of shares in that account during this period.

Think of it like a forgotten bank account. If you don’t use it, it becomes inactive. The inactivity triggers a classification of “dormant,” which typically leads to restrictions on the account, such as the inability to place new trades.

There are other implications of having a dormant trading account. For instance, you might face some restrictions or charges. It’s always advisable to keep your trading account active to avoid any inconvenience.