Primary and Secondary Markets, How to do trading ?
Buy and Sell.Primary and Secondary Markets
Shares which are bought in IPO are called primary market shares. Once IPO is over and shares are listed in stock exchange and if you buy them, they are called secondary market shares.
Opening a Demat Account :
A person should open a demat account ( dematerialised account) with any of the brokers available so that trading can be started. ICICI direct, Reliance Money, Share khan, India Bulls, Geojit, 5 Paisa, HDFC securities are few of the brokers available with whom you can do online trading.
Pan Card is must for opening demat account. You should also have address proof and Id proof so that the demat account can be opened. It takes upto 15 days to open a new online trading account.
Your broker will create an online account for trading, demat account for your shares, bank account for your cash transactions. ICICI direct offers 3 in one account but brokerage is bit high.
Reliance Money has flat amount as brokerage which will be useful for those who trade in huge volumes.There are some brokers who open only a demat account but you cannot do online trading. You need to place orders through phone in this case.
How to do Trading? Buy and Sell.
Once you get your account, you can login to your account and the menu you see their should be easy to navigate. You can click on "Buy" option to buy shares. You will be required to enter stock code, the quantity you want to purchase and the price you want to pay.
You need to allocate money from your account to the trading account. Most of the brokers have some feature called modify allocation or allocate amount for trading purpose.
If you do not know stock code, you can search for the code by entering first few letters of the company.
There are two types of prices ie limit price and market price. Market price is the price that is prevailing when your order reaches the exchange and is executed.
Limit price is the maximum price you are willing to pay to buy a stock.
Example : Reliance is quoting at 2400 and you want to pay only 2390. If you put limit price as 2390, your order will be executed only if the price reaches 2390. If you put market price then the price prevailing at the time your order reaches will be taken. If the price moves to 2420 by the time your order reaches, you will get at 2420 or if the price moves down to 2380 you will get at 2380. Market orders are risky for high fluctuating stocks. Always put comfortable price limit price for executing orders.
You can check your limit available for trading after each transaction that you make.You can sell the stocks in the same way by selecting "Sell" option.
Once you buy a stock, the shares will be credited to your account in 3 days. They will be in your demat account. You can view them by selecting "demat account". In case you are not able to see them , click on "demat allocation" and then allocate the shares.
Buy and Sell.Primary and Secondary Markets
Shares which are bought in IPO are called primary market shares. Once IPO is over and shares are listed in stock exchange and if you buy them, they are called secondary market shares.
Opening a Demat Account :
A person should open a demat account ( dematerialised account) with any of the brokers available so that trading can be started. ICICI direct, Reliance Money, Share khan, India Bulls, Geojit, 5 Paisa, HDFC securities are few of the brokers available with whom you can do online trading.
Pan Card is must for opening demat account. You should also have address proof and Id proof so that the demat account can be opened. It takes upto 15 days to open a new online trading account.
Your broker will create an online account for trading, demat account for your shares, bank account for your cash transactions. ICICI direct offers 3 in one account but brokerage is bit high.
Reliance Money has flat amount as brokerage which will be useful for those who trade in huge volumes.There are some brokers who open only a demat account but you cannot do online trading. You need to place orders through phone in this case.
How to do Trading? Buy and Sell.
Once you get your account, you can login to your account and the menu you see their should be easy to navigate. You can click on "Buy" option to buy shares. You will be required to enter stock code, the quantity you want to purchase and the price you want to pay.
You need to allocate money from your account to the trading account. Most of the brokers have some feature called modify allocation or allocate amount for trading purpose.
If you do not know stock code, you can search for the code by entering first few letters of the company.
There are two types of prices ie limit price and market price. Market price is the price that is prevailing when your order reaches the exchange and is executed.
Limit price is the maximum price you are willing to pay to buy a stock.
Example : Reliance is quoting at 2400 and you want to pay only 2390. If you put limit price as 2390, your order will be executed only if the price reaches 2390. If you put market price then the price prevailing at the time your order reaches will be taken. If the price moves to 2420 by the time your order reaches, you will get at 2420 or if the price moves down to 2380 you will get at 2380. Market orders are risky for high fluctuating stocks. Always put comfortable price limit price for executing orders.
You can check your limit available for trading after each transaction that you make.You can sell the stocks in the same way by selecting "Sell" option.
Once you buy a stock, the shares will be credited to your account in 3 days. They will be in your demat account. You can view them by selecting "demat account". In case you are not able to see them , click on "demat allocation" and then allocate the shares.
