How to use an online trading account?

Online share trading is now the need of an hour for any trader. Gone are the days when you used to go to stockbrokers or sub-brokers terminals to perform trade. Now online platforms are readily available with most of the brokers. All you need to do is follow these simple steps to use online trading account:

• Choose and open low brokerage Online Trading Account:

  Look for the best online trading broker that offers the online trading and demat account and also instant, paperless online account opening process. The broker should have all types of online trading platforms namely: Trading software, online trading website and trading mobile app in place. Traditional brokers like ICICI Securities,ShareKhan, Angel Broking, HDFC Securities all offer online as well as offline mode of trading but have percentage based brokerage charges. Discount Brokers like5Paisa, Zerodha,ProStocks, Upstox only offer online trading platforms and also charges very low brokerage.

• Learn by means of demos, articles and video tutorials on using the platform: Most of the online sharebrokers offer free and easy to understand demos in form of videos on how to trade using online trading accounts. The brokers also share easy tutorials and articles on most of the topics related to the stock market and share trading. You need to get acquaint yourself with the terminologies and jargons of the share market by reading all these articles. Some brokers also offer online stock simulator or virtual trading where you can trade virtually in to learn how to trade without losing any money.
• Know about different types of orders, market segments, margins/exposure, order book, trade book and how to place an order: Know which market segment you want to trade in like equity cash, intraday, equity derivatives, currency or commodity. There are different order types for each market segment viz- CNC, market order, limit order, NRML, MIS, Cover Order, Bracket Order. You should also know about margin/ limit if you plan to trade in derivatives. Order book and trade book are like two journals that help you keep track of your order placed and trade performed during the day.
• Start with the small trade: Always remember to invest a small amount in the beginning. This will avoid big losses if anything goes wrong by mistake. Keep checking your portfolio for profit and loss and your order book. Always try to put stop loss order, where you can limit the loss.