Process of trading, How does the actual trading occur.

 Process Of Trading?

Before the advent of the internet, you were required to physically visit brokers, and instruct them for transactions. But now stockbrokers provide digital trading platforms, where you can trade through:

Web trading applications.

Terminal software.

 

Mobile-based apps.

How does the Actual Trading Occur?

*After providing the details of your Demat Account and Trading Account to the broker, you need to specify the amount of stocks to be sold or purchased.

*The broker checks whether your account has the requisite funds.

*Your order is now passed for execution in the stock exchange. For instance, if you have issued a purchase order, it will be matched with a similar sell order. You have to finalize a price, following which the seller will confirm it.

*The exchange then confirms the transfer of ownership of shares. You then receive an intimation about the settlement, and the shares will be reflected in your account in two working days.

*Depending upon the market movement, you either make a profit or loss from the transaction.

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