Understanding Online Equity Trading In India
In the world of finance, the term Equity Trading refers to buying and selling company stocks. Shares in large public traded companies are bought and sold through major stock exchanges and equity trading in India is done through the NSE (National Stock Exchange) and the BSE (Bombay Stock Exchange). Presently equity trading can be done both online and offline and anybody willing to invest in shares can use any of the two platforms as per his preferences and conveniences. Since internet was first introduced in India during the early 1990s use of internet in India has increased rapidly. In the country online equity trading was first started by the NSE by allowing users and investors to buy and sell stocks in a day that required minimum paperwork. Compared to the 60 days period prior to the introduction of online share and equity trading – the waiting period has been curbed to minimum by the use of the internet and a result a growth of 1488% in terms of exchange turnover was recorded in Indian capital markets during the period of last 10 years or so. Both owners of the shares or authorized agents can buy and sell shares through online equity trading. Agents are authorized to buy and sell shares on behalf of the actual owners. In online share trading all major stock exchanges have market makers who actually help the exchanges in limiting price variation or ‘volatility’. Market makers do buy and sell shares of a particular company on their own behalf and also on behalf of their clients. During the period of last 10 to 12 years with the growing popularity of online equity trading in India average investors are finding it increasingly luring to play a major role in their own financial planning and thus shaping up the direction of their future. Though the online equity trading can be immensely stressful and financially dangerous, more people are now finding it an alternative for their regular jobs. But individuals who will like to pursue a career in this non-mainstream field are required to have knowledge as well as skill in technical analysis, trading psychology and money management. Willingness to work in an extremely fast paced competitive environment under pressure is another criterion that that one must conform to for a career in online equity trading in India. As online trading has almost become the norm for a growing number of traders and investors during last ten years or so it is now possible to enter direct orders online. Though they orders entered online are still routed through brokers that allows them approving and monitoring the trades. Investors in online equity trading are provided with a trading platform that acts as the hub. The platform allows investors to buy and sell equities and different types of securities online. Those platforms also offer tools for indices. Portfolios and securities tracking and monitoring along with research tools, real-time streaming quotes and others better helping them to trade profitably.