The share market is something that offers grand opportunities to people without any restrictions. The only condition to take the benefit of this market is knowledge and skills. One must know how to trade in the market and choose the right segment that can help to have the best money making opportunities. Those who know the movement of the market, the trend of the prices and corporate style of work can understand the segment well and choose the one that best fits him. Due to such features, only many of the traders have taken it as the main source of income or business.
The trading in the market:
In the share market, the primary requirement of a trader is getting the best share broker in India who can offer the services at a reasonable rate. The broker charges the brokerage which is his revenue and offered by the trader for the services he gets from the broker. The broker offers the services such as account opening of Demat and trading without which the trader cannot carry out any trade as per the norm of the regulator. Hence the lower the brokerage one can have higher trading with which his probability to make more profit can be increased.
Requirements of Demat account and trading account:
For a trader, it is necessary to find out the requirements of the Demat and Trading accounts. For this, he needs to offer some of his documents that include the identity proof, address proof, cancelled cheque, copy of PAN card and aadhar card which are mandatorily required as per the guidelines of the SEBI which regulate the share market.
Demat is an account where the bought shares can be parked if the same are bought for the long run. Those who subscribe for the IPO also get the credit of the shares allotted to this account. The trading account is the one where the traders can buy and sell shares on a regular basis. This account is much required for those who need to go for trading.
How to open an account:
Opening an account is simple where the documents are much required. One who is willing to trade needs to fill the required application form. The Demat account can be opened with the NSDL or CDSL only as they are the two authorities who are allowed to open the demat account.
Once the application form is filled and provided to the broker with required documents, the broker checks it and sends it for the further process. If all the provided documents are found in order, the account gets opened in some days. Usually, it takes around a week to get the account opened.
Once the account is opened, one needs to provide the margin money on the basis of which he can be allowed to buy the shares beyond his amount credited. However, in a few days, one needs to settle the account as per the norm of the broker or broking firm. Hence the broker makes the process of account opening and trading easy.