Do you know there are 80 million unique PAN accounts registered on NSE? This means there is a growing interest among individuals to participate in the share market. However, for that, the primary requirement is to have a trading account. It opens doors for the share market and offers numerous opportunities to invest and trade and earn profit.
In this article, we will learn what opening a trading account means and how it helps users to participate in the share market. So, let’s embark on this journey and understand how to enter the share market with a trading account.
Table of Contents
What is a Trading Account?
All transactions in the share market can be done only through an account called the trading account. It acts as a gateway for you to trade securities like shares, futures, options, etc.
Such accounts can be opened with a broking firm or an online trading and investing platform like Dhan who provide access to the stock market. These online trading platforms facilitate all trades and transactions that happen through the account. So, the starting step in the share market is opening up a trading account.
The trading account acts as a bridge between the user’s intentions and actions. It matches the buy and sell orders made by the user, confirms the market price and undertakes the transaction. This execution happens in split seconds, saving time and effort for market participants.
A trading account allows users to monitor the share market, interact with other traders through transactions and earn profit.
Features of Trading Account
Here are the features of a trading account in India that can help you understand its functionality better.
Market Information
A trading account helps in getting real-time information about the market. It shows stock prices, charts, highs, lows, news and other required information for the traders.
Tracking the Positions
A trading account lets the user track their portfolio, and performance of the investments and get trade history. It promotes timely decisions and therefore helps make use of the share market in profit building.
Margin Trading
Users can also borrow funds from other traders to increase their trading capacity. This is called a margin trading facility which lets the traders amplify their profits but it also increases the associated risk. Margin trading can be done only if trading platforms allow this option.
Access to Different Order Types
Users can place different types of orders like market orders, stop orders, limit orders, etc. with a trading account. These types of orders offer flexibility for traders to take positions as per their requirements. It also allows traders to manage risk with stop loss and trailing orders.
Conclusion
The share market offers a huge opportunity to traders and investors alike. A trading account stands as a bridge between the stock exchanges and traders to complete the trades. You can trade securities and manage your portfolio using a trading account. If you are looking to start trading, you can consider Dhan, India’s leading online trading platform.
