Many times people look for an opportunity that can help them to get some extra income. One may be occupied in his job, study or other activities and hence cannot go for additional activities that can help to earn some more income. At such stage, if one knows the finance market, he can take advantage of the same and start day trading which can help him earn some extra income. Here the process is very simple, and with proper calculation, one can easily earn handsome amount.
How to trade?
The trading is very simple in this age of technology. One needs to open a Demat and a Trading account with any of the leading broking firm or top stock brokers in India. One can search them in the local market as well as on the internet. One can either leave a message on their site to contact him or can contact the customer care of the same personally.
Before opening accounts with any of the service providers, one needs to do a little research. He needs to check the rate of brokerage, margin money, credit facility and rate of interest on credit if there is any. For the trading in the stock market, the trading and demat account are mandatory. One can open the demat account with either NSDL or CDSL. The trading account can be opened with any of the service provider.
The trading account:
There are two types of trading account, and one can go for any of them as per own requirement and understanding.
- Offline account: The offline account is for those who do not have time to monitor the stock market and share prices. Hence they need one who can help them in placing the order and also update when the order is executed. In many cases, the client may set a limit for purchase or sell of shares, and if the limit is hit or not, the bolt operator updates him. In the offline account, the service provider is provided with the support of the bolt operator.
- Online account: In the online account, the client needs to handle his account himself. He also needs to place the order and set limit as well as observe the execution of orders personally. In the online account, the service provider does not offer any support for trading to the client. In case of any technical issue the client can ask for support, but otherwise, the client needs to deal on his own only.
Many of the brokers also differentiate in the brokerage rates as those who go for offline support need to pay more brokerage while the clients who prefer to go for the online account may get some discount in the brokerage rate. It is due to the requirement of people that the broker needs to hire to offer the services to the clients. As he has to bear the higher cost of staff, he cannot afford to offer discounted brokerage to the clients who want to open an account.