With the word, stock market one can visualize the computers and people watching the screen where the red and green signs keep on changing. Yes, it is the routine scene of any broking house or company where one can buy and sell the stocks of various companies listed on different stock exchanges. One can either go for intraday trading or can also invest in the stocks of a company for a long term. Both of the systems have own pros and cons. Hence one who wants to leap into this market must check all the facts before starting the trades.
First of all what one needs to have is a trading as well as a Demat account. The trading account is one where one can see the stock purchase and sales while the Demat account is one where the shares of the company which one has bought are parked in dematerialized form. One needs to get both these accounts opened with any of the stockbrokers in the market. All the stock brokers are affiliated with one or other stock broking companies. They earn main part of their revenue from the charges of brokerage from the client when he trades. These charges are fixed as a percent of the total value of the trade or even a fixed amount per trade. Different brokers, as well as stock broking companies, charge various amounts for offline as well as online accounts. The client also needs to provide a cheque for margin money on the basis of which the credit of the client is opened.
The trades: There are different types of trade that one can go for to have some profit from the stock market. There is intraday trading where one can buy the stocks on one day and sell the same on the same day. Hence within one trading session, only the position gets cleared. In such a case the client at the day and can know how much he has earned. In another case, the client can create a position and hold it for three days which is known as delivery trade. However, as per the rule of the broker, the client has to either buy or sell the stock as the case may be or just pay for the concerned stocks. There is also derivative trading where one can go for some lots. Here the time frame for the lot is long and hence one has to be more careful. In this system, the client needs to clear the position at a certain frequency or roll over the position. The chances for handsome profit or huge losses are equal in this trading and hence it is preferred by the traders who have sound knowledge of the market as well as finance sector.
In short, one can say that it is a job of only those who understand the trend and current of the rate and change the position accordingly. It is marked with great sensitivity and hence one can also see a huge momentum in the rates.