A Comprehensive Guide for Trading in Indian Financial Markets
Trading might seem lucrative at first, but it is not everyone’s cup of tea. Individuals who aren’t careful often end up with a financial loss due to trading. Some people even have the misconception that trading is entirely based on luck. Trading requires different skills, including research, analytics, and attention to detail. You must have a proper understanding of the resources that help make profitable trades. Live trading in India also requires an understanding of market conditions. The key is to make informed trading decisions is likely to offer better results. Read on to understand the basics of trading and how to succeed.
Introduction to Trading in India
Trading refers to buying and selling financial instruments with the help of an investment account. Once you open a trading account with a stockbroker in India, you can access securities listed on stock exchanges. Trading also encompasses publicly-traded instruments in other markets. It can include the trade of shares, bonds, derivatives, warrants, rights, commodities, ETFs, and many other instruments. Investors buy these securities and hold them for a given duration. The idea is to hold the securities and sell them at a higher price to make profits. One must have a Demat account to hold securities for a given period. Without a Demat account, you will have to keep physical certificates of your trades.
Steps to Get Started with Live Trading
Have you decided to trade financial instruments or securities? Here are the steps to get started with live trading India:
- Find a reliable stockbroker to open an investment account
- Apply for a 2-in-1 trading cum Demat account with a reliable stockbroker
- Complete the KYC (Know Your Customer) process to receive authentication from the stockbroker
- Go for an in-person verification when the stockbroker insists
- Receive the login credentials of your investment account from the stockbroker
- Choose a trading platform for investment research
- Start buying and selling financial instruments after research
Are you wondering which Demat account is best for beginners? Stockbrokers usually charge a fee for opening a new Demat or trading account. However, Religare Broking has come up with a free plan for new investors in India. Investors can now open both trading and Demat accounts without any cost. Religare can also help investors with a research-oriented trading platform for decision-making.
Are You Familiar with the Types of Trading in India?
Once you are settled with an investment account, it is time to know the common types of trading in India, which are:
- Day Trading: Day or intraday trading refers to buying and selling instruments on the same day. The trades are finalised before the stock exchange closes. Trades try to take advantage of short-term price movements with this technique.
- Swing Trading: When investors take advantage of short to medium-term price swings, they indulge in swing trading.
- Position Trading: Investors take positions in stock markets for an extended period with position trading.
- Forex Trading: You can invest on exchange rates between currency pairs in the Forex market to earn returns.
- Value Investing: It involves investing in undervalued securities and waiting for capital appreciation.
In a Nutshell
Trading in India might not be as easy as it seems. You must depend on a research-oriented trading platform to make the right decisions. Religare Broking can help you get started with live trading in India by offering an investment account. Start investing and build a profitable portfolio!