Online Share Trading

  

Online Share Trading is becoming the order of the day in share trading. Now-a-days one could hardly see a person going to the stock exchange floor and placing his order. Electronic media has played an important role in flourishing the share market. In case of online share trading an investor could place his order from his own house if he has internet connection.

In earlier days the brokers went to the stock exchange floor and place their clients’ order. But now through the help of the satellite the broker can have his own trading system from his desired place. This system is known as VSAT system . In turn they also give connection to their clients through internet for performing online share trading .

The client could avail the share market from any place he wants provided he has a computer with an internet connection. Through online share trading he gets the following services :-

• Real Time Feed of the share market
• All the informations regarding the market :-
  • Best Buy and Sell order
  • Placing Buy/Sell order
  • Volume
  • Traded Value
  • Today’s High and Low
  • Change of price of the share from last day (both in absolute and percentage terms)
  • 52 week High and Low
  • Stock tips
  • Graphs and Charts

There are two types of trading that can be done through online share trading :-

Intra day trading

They enter and exit out of the market like the thief in the night. Traders continuously have a watch on the market during the trading hours and the moment they see any opportunity arising they pounce on it for scalping the profit out. These type of trading generally are risky in nature. They buy and sell stocks during the same day.

Intra day Traders are of two types :-

i. Scalp Traders

Investors who perform many trades per day for scalping out small profits out of the bid-ask spread from each trade are known as scalp traders.

ii. Momentum Traders

Investors who pounce on those stocks which move significantly in one direction and book desired profit are called momentum traders. They do this within a day.

For the intraday traders the brokerage costing is minuscule in comparison to the delivery trades.

Delivery trading

The investor buys the share for holding purposes. The brokerage charges are a bit more than the intraday ones.

Delivery Traders are :-

i. Technical Traders

They believe that buying/selling signals are present within the graphs and charts of the stock.

ii. Fundamental Traders

They perform trade on the basis of study of fact-sheets of the company like historical profit graph, balance sheet, anticipated earning reports, stock splits, mergers and acquisitions, etc.

iii. Swing Traders

They are basically fundamental traders who take delivery of trades for a span of short period generally more than one day.

In this electronic form of trading, the shares are not in the physical form for their inconvenience to handle. So, they are now converted to dematerialized form . So, one investor does not have to worry about the safety of the physical shares because the bought shares get transferred to the respective D-mat account .

Thus, online share trading has helped the investors a lot as it is hassle-free and time efficient.