In India, investors have multiple avenues to invest funds in. They can invest in gold, traditional bank schemes, real estate property, and commodities. The Indian stock market always remains a suspiciously risky, but attractive arena to invest funds in. Every investor knows that a stock market investment may offer sky-high returns over a period of time. How to get a return on investment in the stock market is an important issue for investors. Without buying and selling the stocks in the market, no one can interpret and estimate the returns on any stock.
A buying and selling activity of the stock market is a part of online stock market trading that requires a demat account. How to trade with the securities, is an important query for an investor who wants to trade in the stock market. To answer the questions, every investor must have to know the stock market trading rules and requirements.
Online trading: A guide to buy and sell the shares
To buy and sell the shares in the market would use multiple methods. Any method to buy any share would require opening a demat account. Having a stock trading and demat account opens a way to the stock market world.
Following are various concepts related to buying and selling stocks in the Indian stock market.
Open a trading account before buying and selling stock in the market:
A primary necessity for buying and selling any kind of security is a trading and demat account. The Indian stock market has numerous brokers that provide a wide range of services related to stock market trading. These brokers open a free trading account or account with a negligible cost. As an investor, you would need to select a broker firstly, with whom you would like to open your account.
After selecting a broker, you can apply for the account with a proper registration process. In the registration, you would ask to fill in your personal well as other important details related to bank, income, and identity. After registration and proper activation of an account with KYC verification. You will get an investor identity with which you can buy any security in the market.
Start buying of the stocks with analysis of various companies:
The motive to open a demat account is to earn a better return with the securities that you would buy from the stock market. Before buying a stock, a demat account explores a list of various types of securities. You can analyse the securities’ fundamentals, past trends, stock returns, and other parameters of the company. With the proper analysis of security, you can buy a stock as follows:
- Firstly, add some funds in the wallet through online payment portals. By clicking on “add funds to wallet” in the online portal will ensure the proper addition of funds to your account.
- After getting funds in account, you can buy any selected stock by just clicking the option “buy stock”. With a click on the option, the broker debits the fund from your account and starts the clearing and settlement process. With a “T+2” days settlement, you will get security after 2 days in your demat and trading account.
Selling of stocks with a demat account:
Just like a buying process, you can easily sell stocks in the stock market. All you need is to have your account with you. A single click on “sell stock” would start a selling process. On the day when you click a “sell” option, a broker would block the selected stocks in your account so that you can’t trade in the same stocks. After 2 days, you will get funds in your account and stocks will automatically be removed from your account.
Conclusion:
With these above procedure steps, an investor can buy and sell the stock with a single click in the account. Proper knowledge of stock market trading would assist in the right time to buy, hold, and sell the security.
