Share market trading:
In the fast paced world, its very essential to save and as well grow your money. The highly volatile situation in which we live in necessitates more secured ways of investments. Share market trading is one of the ways to gain high returns on investment. The participants in share market trading can be hedgers, speculators or arbitrageurs. Hedgers trade in the market so as to protect themselves against risk of fluctuating prices. Speculators speculate the direction of future prices .They usually don't accept deliveries rather liquidate their positions before expiry of contract. Arbitrageurs buy and sell to make money on price differentials across different markets.
Most of the trading in India happens in Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Indian stock markets are regulated by SEBI. BSE was established in 1875 whereas NSE was established in 1992.NSE is world's 12th largest stock exchange as of March 2016. Sensex and Nifty are two important market indices in India.
Share market trading requires thorough research and continuous monitoring of the stock market. Its essential to have a financial advisor whose suggestions would be of immense importance.Opening a trading account is the major step. The 3 important accounts needed to trade are
- Banking Account
- Trading Account
- Demat Account
Banking account is used to transfer money to and from your trading account .Trading account has to be opened with a registered broker. This is used for buying or selling shares in stock exchange.Demat account holds the shares in electronic format. Demat account can be opened only by registering with a Depository Participant.
There have been so many technological upgradations in the trading segment.Online trading has become more common these days as it is secure and fast. Mobile Apps have even more revolutionized the way trading is done. You can always stay connected to the markets through the mobile app. And get research reports instantaneously. To know more about trading click here. https://www.karvyonline.com/general/platform
Share market trading needs a disciplined approach and patience. Due to the compounding effect, the returns are usually high in case of shares when the investment is for a long term. People have various financial goals and in order to meet these goals, they can invest in shares using the right strategy. Deciding on the right company is the major step and it needs to be done after careful research. Start investing and reap the benefits.