Getting the right account opened is the primary condition for those who are interested in trading in share market. Such people must know that these accounts can be opened with any of the authorized broker in this market. One needs to go for the trading and DEMAT account which is made compulsory by the market regulators. The DEMAT account is the one that can help one park his shares bought for a long run. To open these accounts one needs to provide his documents and also apply in a prescribed form. These accounts are opened within five to seven days by the concerned broker. One can trade in this market only after opening of these accounts only.
The account opening process:
For those who want to open a DEMAT account, it is better to get necessary information first. There are some brokers who offer DEMAT account for free and some takes a charge for the same. For account opening one needs to provide the documents such as Adhar card, PAN Card and a photograph. One needs to provide one identity proof and one address proof but if one stays at the same address as mentioned in the Adhar Card it can suffice the requirements of both of these documents.
One also needs to give a cancelled cheque for linking of the concerned bank account. Usually every broker or broking firm has some relationship managers who prove helpful in such account opening.
The trades and type of trading:
Once these accounts are opened one can start trading in any segment of his choice in the market. While going for the segment one needs to check his profile and go for the one which can be most suitable to his requirements as well as profile.
One can trade in any of the options offered by the market. One can go for cash segment or derivative. In cash segment one can go for the trade in intraday or delivery. If the intraday is chosen one can have profit in a limited period and that too with a limited risk. Here one can carry out trades in a little investment also. If one wants to go for the delivery he has to pay the amount to the broker within specific period. However, once the amount is paid there is no risk to the buyer unless he wants to sell them at a low rate.
Some traders also prefer to have trades in derivatives where there are contract sizes offered with various time frame. Here one needs to have more investment and also bear a high risk. Though profit is also very high in this type of trade, it is recommended for the veteran traders only and not to novices. The probability of earning varies with the time as in contracts one can have contract from one month to three month and need to roll over when the period is over. Meanwhile if one feels to have profit, he can square off the position any time.
You can hire an expert for open a DEMAT account and start trading in stock market. If you have no knowledge of share market then you can go with mutual fund.