As a side income avenue, trading in the stock market is a better option for all those who know about shares, corporate, price movement and profit. In the field of trading also one can have various options, and it all depends on one’s knowledge as well as capital investment as well as risk-bearing capacity as per which he can trade. The trader first needs to have a trading account with any of the leading service providers. There are documents also that he needs to submit to the service providers and as a part of the process the account is opened.
One can jump in the field of intraday trading if he wants to make money quickly. In another case, if one has ample budget, he can go for the delivery based trading where the brokerage amount is low, and there can be a service provider who can offer a plan with discount brokerage India. The trader needs to check various terms as well as conditions and charges that he needs to follow while operating the account. As there are many service providers available in the market, he needs to check the brokerage as well as other charges from the service provider for different types of segments.
The segments:
Mainly there are two segments which are known as cash and derivatives. In the cash segment, there are intraday as well as delivery based trading while in the derivatives there are futures and options. The intraday trading requires limited capital, and the risk here is also limited. The delivery based trading involves more capital and may offer more profit also. In the futures and options there are contracts that expire after certain days, and before that, the trader needs to check whether he has squared off the position or not. If the position is still there and the session is over, it may automatically square off the position at a fixed time.
The account:
In the market, the trading account is a must for every trader. Some people love to make money in a little span and in such situation they prefer to go for the intraday trading. The probability of the profit here is limited, and the same is for loss. There is also a delivery trading option that can help the trader to go for the long-term returns as well as a portfolio. In the delivery trade, the trader needs to employ a good amount of capital also as he needs to pay the amount to the broker in a few days only. He can earn the profit by selling shares after an increase of rates, and if he has to keep the shares, he can earn by the dividend also. The brokerage rates of both the trades are different. One can have a trading account which can be an online one or offline. The offline account can be much helpful to the people who are busy during market hours as they can have the help of terminal operators who monitor the market during the market sessions.
