Open demat account to start share trading in India

Published: 05th July 2011
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Imagine what will happen if the Indian share trading terminals have traffic signals for the BSE and NSE shares? Whenever the signal would give out red light, it could be taken as a warning and one could refrain from making any purchase. However, when the signal would give out a green signal, traders could execute buying and selling transactions, and can even take little bit of risk when the orange light is given out by the signal. Then the stock brokers would play the role of traffic personnel who would give your trading activities a clear and proper direction so that you are able to make profits.

On a serious note, such a thing is not possible in a real-world stock market and not as objective as we would like to believe. Stock markets are a function of many factors such political climate, economic environment, etc. However, even after such limitations, Indian stock markets are an exciting place to make money. So you will not repent if you open demat account for yourself.

If you still did not open a demat account but planning to start with shares trading, you do not need to tensed and clueless for not getting proper guidance. There are many online platforms that can come to your rescue. All you need to do is log in to a stock trading platform that you think is reliable enough and that gives you the facility of opening demat account in India. For this, you are advised to select a share broker from among the top ones in the country that satisfies your financial needs.

As for your information sake, you need to Open demat account in order to trade or invest in the Indian share market. It is a compulsion set by SEBI. Apart from giving you the right guidance, they also take care of all the transaction you make. However, the ultimate decision of making a purchase or sale of share lies with you. Of course, in the present times, a lot of stock brokers trade on behalf of their clients after getting their consent. So donít hesitate and open demat account at an online stock trading portal.

Once you open demat account, you will have the liberty of trading in stocks listed in both Bombay Stock Exchange and National Stock Exchange, the two most important exchanges in India. When your venturing out in the stock market after freshly opening a demat account, you should start by investing only a small amount of money. Since you would be a novice, investing large sums of money would be a bad idea as you will run a greater risk of losing money. Hence, a cautious approach should be the way to go for you.

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