Trading Stocks Online- Requirements of online trading.

Stock is the capital raised by the company, and issue to the public in the form of shares. Anybody who possesses money can buy these shares at one value and sell them at higher price whenever the stock reaches it. The buying and selling of these shares is known as trading. Trading can give loss or gain to the person involved in it, even though everyone wants only profit. The trading is done at the exchange when the person is physically available in that place and gives the indication to the broker or the staff employed for the purchase of a stock or selling a stock already purchased sometime back, selling done for the purchase stock at reasonably high price. The type of trading is known as Manual Trading.

The procedure by which trading of stocks is done online through communications network where the buyers and sellers are connected by internet. This type of trading is known as online trading. The people who have their own reserve of scripts are said to be dealers and also known as markers. The dealers are available for selling and buying of specific stocks, related to the specific exchange. The exchange has got more standard and in covering almost all the scripts traded and companies. The exchange without any staff or people, with only software installed matches the orders placed from buying and selling.

A simple internet broadband connection is enough for a person to do online trading from home, from own business centers if one has got more interest for trading. A Dematerialized Personal or DP account is opened with a financial or brokerage company by signing and submitting the necessary documents to them. Usually stocks traded manually in olden days; more commission was paid to the broker for the recommendation of stocks. Online trading has got more advantages when compared to manual trading. The usage of paper is not there.

The latest trend of online stock trading has far more reduced the manual trading. The good feature of online trading is that one has the total freedom to trade without any kind of disturbance, normally seen in

manual trading. After online analysis of the shares and also getting some good suggestion who is well experienced one can start online trading of stocks. The commission usually charged is less. The transportation cost is also saved. The analysis is done individually by the account holder by going through the sites which are related to stocks and shares. One can get the relevant details of the company, by which one can have an idea to trade in that stock or not. Updates are there for every half an hour about the company or commodity stocks.

Quarterly results of respective companies are displayed online, which also contributes to more online investing. The space given to online trading makes one to trade at ones risk. Rates can set by the online trader for buying and selling at his own will. There is no limitation for the number of stocks to be traded on a day. Trading is limited only due to non availability of cash. There is an option of modifying, canceling the order. Selected Scripts are added online to their trading account and also deletion of script is done. Actual buying and selling of portfolios can be tracked by online trading. Equity, Futures and Options trading can be done online. One can instantly transfer the amount from one account to another DP account; money is directly credited from the bank to the account.

The details of the reports can be seen before and after the hours of trading ends. Bill summary reports displays online the user information under which account name, branch id, company id, date, traded timing, number of shares of the script bought, market rate, Net rate, market value, net value, order number, trade number, brokerage, along with Net of Current, Service Tax, STT, Stamp Charges, Turn Over Charges, DP Charges, and Net Amount Due. We can also view ledger summary online in which document number, projected balance, amount, balance are reported for the customer.

The other reports such as F&O bill summary, F&O ledger summary can also be seen online along with the amount of cash balance left for trading. This facilitates the customer to trade in a simple manner. Change of trading account password from the existing password is done online. The online process is systematically designed to suit the needs of the customer and also welcoming suggestions for further improvement in its procedure. In case of power failure at the customer place, one can call the brokerage office for online booking of stock. It is also to be noted down that even Initial Public Offer can be booked online at the given range of price band. We can also watch online indicators using the well designed programming software Meta Stock. Actual volume of buying and selling is easily analyzed so that one can have the idea about the stock. Most of the trade pundits take the help of the available software for the analysis of all the stocks and they give their opinion about the stock. The analysis and views of the experts can be read from online, so that one can decide on the opinion expressed by the expert on buying or selling a stock