The stock trading combined with modern technology

The income is obviously a serious concern for everyone and hence many times those who are not able to earn much from the main source of income such as a business or job prefer to go for an avenue that can offer some side income as well. The share market and trading there is a known source for side income. Here the trader can go for trading or investment and gain profit in short or long run. The trading in different segments is possible by a trader. One can go for the trading in cash or derivative as per own choice and convenience as well as knowledge.

The trading:

To trade in this market one needs to have a trading and a demat account where all the trades are possible in the trading account while the shares taken for the long run can be held in the demat account. There was a time when the companies were issuing shares in physical copies,but nowadays they issue the shares in the dematerialized form only,and hence the demat account is mandatory for every trader. The trader can go for online stock trading or offline. In both the types of trading there is not much difference,but the way of passing the trade differs.

The online trading account is one where the client needs to have a computer or smartphone with an internet connection. He needs to log on the site using the user ID and password provided to him by the broker. Here there is software where one can see the movement of the share prices same way as the software of the stock exchange moves. Accordingly, the traders can pass the transaction of purchase and sells of the shares. Here one can also set the limits of profit booking of stop-loss as the normal software only.

The brokerage:

The brokerage is an important part of the trading irrespective of the segment. One can go for the trading in cash or derivative segment only if he has sufficient knowledge of the concerned field. In the case cash segment the chance of loss, as well as profit, are limited while in the derivative they are relatively high. In the cash segment one can go for limited units as per own strategy,but in derivative there are contracts and their prices fixed which if one expects to go up can buy or sell as per his plan.

If the brokerage is considered, in the cash segment usually the brokerage for the intraday trading is lower than the trading on the delivery basis. In the case of derivatives, there is afixed amountas the brokerage from the service provider.

The broker may also offer a discount on brokerage if he can believe that the client who wants to have alow brokerage, can offer a huge volume. In case a broker has opened anew business in the area, he can go for the discount in brokerage to attract more traders that can make the business turn into a profit centre. 
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