How to start trading
- Open a broking account with a registered stock broker. You can also open an internet trading account and start trading by click of a mouse. A large number of brokers such as ICICI Web-trade, Motilal Oswal Securities, Geojit Securities etc. are offering e-broking services.
- Submit your details and sign the broker client agreement with your broker. This is mandatory.
- Open a Demat account with any of the Depository particiapants registered with NSDL or CDSL. If your broker is also a DP, you can open the DP account with him also. Sign the relevant papers and execute agreement.
- Don’t deal with unregistered intermediaries, as this would expose you to counter party risk and may lead to losses without any stock exchange recourse for remedy.
- Give clear and unambiguous instructions to your Broker / Sub-broker.
- Keep a record of all instructions issued to the Broker / Sub-broker.
- Insist on a contract note issued for each day of trading and confirm the details printed therein about your transactions for the day.
- Don’t fall prey to promises of unrealistic high returns. It is easy to lose money that way.
- Don’t indulge in speculative trading, go by fundamentals of accompany and invest for medium to long term.
- Trade within your predetermined limits and financial capacity.
- Promptly issue delivery instructions to your DP for transferring the shares sold by you to your broker’s account. Failure to do so may result in huge losses for you.
- Use the Investors’ Grievance Redressal system of the stock exchanges and Depository to redress your grievances if any.
Categories: STOCK BROKERS
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