The stock market is a known option for the people who want to earn a regular profit by their knowledge and skills. The market is doubtlessly much sensitive to various issues, and hence one must know that the rates may change at any moment. The prevention is better here than damage control, and hence one needs to carry out the trading carefully. Before moving ahead, one must know that there are some primary requirements one has to fulfil, and among them, the opening of a trading and a demat account is a must.
As per the SEBI, that governs the stock market; the traders need to have two different accounts which are known as trading account and demat account. The trading account is one in which day to day trading is carried out while the demat account is one in which the stocks purchased for long-term holding are purchased. There are many aspects of the stock trading that one needs to know. One must decide if he wants to trade or not. He can also go for creation of a portfolio for the long term if he just wants to fetch long-term benefits. In such case, if he plans for the long term, he needs to go for account opening with any of the top 10 stock brokers in India who are known for their services. One can check about them by visiting their local office or check them on the internet.
How to open accounts:
If one wants to get demat and trading accounts opened, he needs to approach any of the valid stock broker or any stockbroking firm. He needs to know the account facilities and rates as well as other terms before opening the account and if satisfied furnish the documents for this purpose. In the documents, one need to provide the address proof, identity proof and cancelled cheque as well as PAN card to open demat as well as trading accounts.
Irrespective of the type of account one needs to submit all these documents with the account opening form. Once the service provider gets the account opening form, he just needs to verify the documents and account opening form to find it in order. In a specific period both the accounts are opened, and the client is also updated about the opening of accounts. Once the account is opened the client needs to fund it as on the basis of account credit only the further credit to the account is provided by the risk department. Once the account has credit available one can go for intraday or delivery based trading easily. In case of the intraday trades, he needs to square off the position on the same day while in case of delivery based trading he can hold the shares, but within a few days, he needs to pay the dues to the service provider as per the share prices. One can go for any of these trading types as per own preference and strategy.