The facts a trader in the market must know - Ganna Magazine Blog

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The facts a trader in the market must know

Before the computerization, the stock market was dealing with manual trades. The process was quite lengthy and also time taking for the client as well as the companies. This process was completely changed after the introduction of the computers to the market, and today one can carry out trading sitting in any corner of the country.

Many people love trading in the market just because it can help one earn some additional income. One who does not have much money and cannot afford huge business risk can also go for intraday trading in the market and fetch fat profits. However, for such profit-making, he needs to have a trading and a demat account with any of the broker, sub-broker or broking company which can be easily opened in a few days. There are some factors that one needs to know before going for the trading.

Is it an online account or offline?

One must know that the account he is going to have will be an online account or offline one as both of these accounts have different features and hence one must understand them rightly.

In the online account, one needs to carry out the activity of trading on his own and cannot get the help of a bolt operator while in the offline account he can rely on the terminal operator. In the online account, one needs to monitor the market and set all the transaction himself, while in offline account the operator is there to keep watch on the market and also monitor the account condition of the client as well as the orders he has placed or limits he has set. In case there is any standing position on the day he asks the client if he wants to square off the position or not. Hence it depends on the requirement of the client what type of account he wants to go for.

What are the brokerage and charge?

This is also an important question which must be answered rightly. The brokerage is a cost that every trader has to bear irrespective of his type of trade whether it was for delivery or intraday. However, the rates for intraday and delivery vary. As there is no standard rate of brokerage, one can negotiate with the broker to have a discount on brokerage rate. For such negotiation, it is better to get the best discount broker from the market as he can directly offer low brokerage and client can go for account opening as well as trading. However, at this stage, the broker also places different terms such as minimum cheque value and turnover on a regular basis as well as the type of accounts.

One can get the benefits if he has a huge turnover and high volume on a regular basis. In case one have small ticket size it is better to check with the online account where one may have to be little cautious during market hours but can earn a good profit at low brokerage rate. 
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