The Internet’s arrival and its subsequent popularity in India has made online trading in India, which is about the online purchase and sale of shares, one of the extremely popular means of trading. Both beginner and experienced traders and investors in India are milking this opportunity by trading online in futures & options, stocks and currencies worldwide. Such opportunities are in the form of reduced brokerage and commissions, better broking services, etc.
Thanks to the ever-rising number of people owning computers along with a readily available Internet access, online stock trading in India is simplified manifolds. This is because investements can now be easily controlled by traders themselves as a result of extensive availability of all types of information on the web.
There is also stock option trading in India. An option is a financial agreement, with a pre-determioned maturity period and price, for the purchase or sale of the underlying product. Stock options enable the protection of dealers and control of their stocks, in addition to generation of higher earnings.
Furthermore, Forex trading in India involves purchase and sale of foreign exchange that enables gains out of the difference in the rates of currency pairs. Other means for online trading in India include futures. Future option trading in India refers to the purchase and sale of financial instruments, such as labour, commodities and currencies, through futures contracts.
For carrying out online trading in India, you have to open an online demat & trading account, followed with an online trading software. For this purpose, you would require a Depository Participant (DP), selection of which should be preceded by extensive research on various determinants.
You would require one of more than one of the following documents for opening online trading & demat account:
PAN Card Proof of residence (Address proof) You can provide any one of the following for this:Driving license Voter’s ID Passport Photo credit card Photo ration card Utility Bill (Telephone, Electricity etc) Bank StatementProof of identity – You can provide any one of the following for this:Driving license Voter’s ID Passport Photo ration cardTwo photographs