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Feb 8, 2009

What is a Trading Account

Trading Account is given to the Investor while registering with broker or sub broker. Trading Account is provided with a Trading ID which is to be used for all the transactions later on. The term Trading in the sense Buying and Selling. Here This Trading account is used to buy and sell the shares. For buying the shares we need to deposit money in to trading account. After that we can use this money to buy shares. And the same account is used to sell the shares. When shares sold money will automatically be credited to the Trading Account. Okay now it is known that if we deposit money in Trading account it is easy to buy shares, but how to deposit money in Trading Account? It is very simple. There are two options available to transfer money from our Bank account to Trading account. We can give cheque to the Broker. Later after clearing that cheque he will deposit that money in to Trading Account. And the second option is to transfer money directly from our Bank Account to Trading Account through Net Transfer option. And it should have a Gate Payment Facility with your broker. Net Transfer is very fast which just take few seconds to credit your money to the Trading Account. Net transfer facility is now available with all the banks. But please Verify with your broker whether your broker has been registered for the Gate Payment with your Bank or not. Detailed Information about Selecting the best Bank will be given later in the Best Bank Section.

1 comments:

vijay said...

Hi this blog is excellent.. its really very helpful for beginners like me.thx for postings

i have some query what is the difference between trading and demat account can u pls share that details

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