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Basic things about Online Share Trading
Basic things about Online Share Trading
Online trading provides an honest service to the client. the online trading has vie an important role within the trendy days by providing smart services like Pan Card, stock broking, mutual funds etc.
chennai,
Tamilnadu,
India
(sardnews.org)
24/06/2014
Online share trading in securities refers to the facility of investor being able to place his own orders using the internet trading platform offered by the trading member viz., the broker. The orders so placed by the investor using internet would be routed through the trading member. To start with, investor needs to identify a trading member who offers internet trading facility and register with the trading member for availing the internet trading facility.
Many of the big and medium sized trading members offer internet trading facility. Investor can get the details of trading members of the Exchange on the website. Identify brokers offering Internet trading facility; check their references from persons having knowledge about financial markets and select a broker who has good reputation and capability to deliver all the services that are expected by the investor. Particular attention should be paid by the investor to the availability of support in case of technical problems while choosing the broker Usually, a person familiar in using computer, conversant with the use of internet and who is able to tackle routine problems associated with use of personal computers may opt for online share trading.
As per Exchange stipulations, in addition to execution of regular documents, the investor would have to execute a specific Member- client agreement for internet trading which broadly spells out the rights and obligations of trading member and Investor besides alerting on system related risk, confidentiality of user id and password. Further, Member and investor may also agree amongst themselves in execution of other documents like Power of Attorney for DP operations, Opening of DP and bank account etc., on registering as online share trading client with the trading member, normally investor receives a welcome kit containing the user-id and password allotted to the client.
Every online share trading client should understand that there could be a possibility of failure of system which could include failure at various points including net work failure, connectivity failure etc. Generally, the trading members have alternate ways of servicing the investors in the eventuality of such failures. In order to mitigate risks arising from such failures, investor before starting trading should understand from the trading member about ways and means of dealing with such failures, steps that investor needs to take for knowing his position, closing the position etc. In the course of his dealing, investor should always make sure that sufficient funds and securities are available in his account with the trading member and that he is regular in payment of margins so as to avoid blocking of account by the trading member. Where due to shortage of margin or funds not paid, the account is blocked and positions are squared off or securities are sold by the trading member, investor may get the details of such square-up, sales from the trading member.
For every trade that takes place on the Exchange, the trading member needs to issue contract note within 24 hours from the date of execution of the trade. Generally, internet based investors opt for Digital contract notes. Hence, at the time of client registration investor should provide an email id which is regularly used. In case investor wishes to receive physical contract notes, he may specify so in the client registration document and cut off the email id column. Investor needs to regularly check the contract notes and if any variation in the trades is found needs to take up the issue with the trading member immediately. Besides the Contract Notes, trading member needs to issue quarterly statement of funds and securities to the investor and such statement can be digitally issued if investor has opted for digital document.
Online trading provides an honest service to the client. the online trading has vie an important role within the trendy days by providing smart services like Pan Card, stock broking, mutual funds etc. the net trading isn't nevertheless developed because of lack of publicity. The online trading helps to develop the economy of the country.
About Shareway Securities Pvt Ltd
Shareway Securities Limited who offers Online and Offline trading in India and allows Equity and Derivative Trading, Currency Derivative Trading, Nifty future and options, Commodity Derivatives.
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