Everything About Online Trading


What is stock trading?

Profitable share trading involves buying and selling stock exchange-listed company shares. Online share trading involves stock purchases and sales. Without a broker or agent, you can buy or sell stock, mutual funds, bonds, and other securities online.

What happens when you buy shares?

When you buy a share, you start to have a stake in the company. For example, if a company has given out 1000 shares and an investor owns 100 shares, he has a 10% stake in the company. As a result, shareholders get a say in how the company is run and can vote on important decisions.
For small investors, the benefit of owning a share is the possibility that its price will rise on the share markets. This may be good for those who own a larger portion of the company’s shares. Thus, investors try to profit from share trading by selling shares for more than they paid. But then the question comes up: What causes share prices to change on the stock market?

How are share prices decided?

Share prices are set by how many people want to buy and sell shares. If investors think a company will make more money, they buy more of its shares, which drives up its price. In a similar way, when people don’t like the company, more investors sell its shares, which brings down the price. Investors who want to make money will either buy and sell on the same day or take a position for a few days before squaring off. This brings us to the next part of share market trading: trading vs. investing

Also Read: What Is Trading?

Differences between trading and investing

Trading is the short-term buying and selling of shares. In day trading, for example, traders square off their positions within the same trading day.
Investing, on the other hand, means buying shares and holding on to them for a longer time, which can be days, months, or years, before selling them.
In day trading or intraday trading, traders have to close their positions during the trading hours. If not closed, open positions are squared off at the market’s closing price. But whether you want to be a trader or an investor, you should be aware of the share trading time on the Indian stock market.

Put money on your trading account:

• Once the account is set up, you will get the login information and password.
• Log in to your account and go to the Fund Transfer section. Your trading account will be linked to the bank you listed during sign-up. • You should put money from that bank account into your trading account. (You can also transfer the money back to your bank account).
• You can make a watchlist of your favorite company, keep track of its price, and place a buy order whenever you want.

Costs of trading stocks through a broker

When you start trading, the stockbroker will put charges on your share market transactions, which is a fee for the services provided. A full-service stockbroker will charge a percentage of the transaction’s value as brokerage. They offer extra services like stock recommendations, advisory services, and custom reports, so their fees are on the higher side. On the other hand, discount brokers give you demat and trading accounts and the basic tools you need to make trade decisions on your own. As a result, the fees are relatively low and are usually a flat fee per transaction, no matter how much money is being moved.
With Bajaj Financial Securities limited, you can get a flat fee per trade and save a lot on brokerage fees. Share trading is one way to invest that can help you make money grow and reach your life goals. The more you know about share trading, the more benefits you can get from it.

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