DEMAT Account Opening Free

 

We can open an Online DEMAT account for free for long term and short term investment goals with many Stockbroking firms in India. A DEMAT account is an essential account for investing in the stock market as it holds your shares in electronic form. The charges for DEMAT and trading account opening fees may be different with different brokers and they charges are on the basis of Account Opening Charges and Annual Maintenance Fees (AMC).

HOW TO START TRADING ONLINE

Now a days stock market trading has become quite adept specially after Corona period. The first requirement for us to perform the online trading is that, we must a have a DEMAT Trading account in order to begin trading online. For this requirement  we need to register with any online stockbroker in India. We need to complete fill out necessary details and complete the KYC (Know Your Customer) and complete the confirmation details as per the requirement. Once the account id opened, we need to deposit the money and start trading or investment to fulfil our short term or long term goals.

We will understand the complete process one by one:

Activity # 1: First step is to identify a Stockbroker

Finding the ideal stockbroker for you is the first step in the process. We have many options to open a DEMAT Trading account with the stockbrokers.

The charges for DEMAT and trading account opening fees may be different with different brokers and they charges are on the basis of account opening charges and  annual maintenance fees (AMC).

Activity# 2: Creation of DEMAT account 

Now a days, with the availability of internet on phones and laptops, opening a DEMAT account is really easy and straightforward. You may open an account in few minutes, however, the pre-requisite documents should be available with you and which will be verified by the broking agency during the opening of an account. The majority of the documents are listed below-

·       Fill the account opening Form
·       Enter your name, email address, PAN number, DOB, and other KYC information.
·       Enter your address, bank account number, IFSC, and name of the account holder.
·       Submit your POA (proof of address) and POI (proof of identity) documents.
·       Choose a "Account opening plan" based on your requirements and pay the charges for the same.
·       After entering the OTP that was issued to your Aadhar registered number, "e-sign" is finished. Once you submit, you receive login credentials for your DEMAT account, after verification.

 Activity # 3: Login to your DEMAT account and add money for Trading and Investing

Once you receive your login credentials, you will be able to login to your DEMAT account. The next step that lies ahead is adding funds to your DEMAT and trading a/c. Addition of funds will happen through the bank account you have linked with your stockbroker, while opening the account. You can always add more bank accounts with your trading account to make it easier for yourself.

 Activity # 4: Beginning of your Investment and Trading Journey-

You can now browse the Nifty and Banknifty Index levels, Future and Options details and stocks information like Charts Patterns, Share Price, Market Depth etc. after logging into your DEMAT account.

ADVANTAGES OF OPENING A TRADING AND INVESTMENT ACCOUNT

Our Trading Account has many benefits to investors, traders and shareholders.

The major advantages are mentioned below for your reference and ease:
·      Allow investor and trader to plan their short-term and long-term investment goals
·      To buy or sell stocks and to trade in future and options category as well
·     With the DEMAT account you may have the benefit of record the transactions on real-time basis and to evaluate your Profit and Loss (P&L) in your trading account

Click Here - Stock Market Basics

https://drive.google.com/file/d/1771Qh4E67nesPL8Om6jnR87pFIieyiAs/view?usp=sharing

FUTURE AND OPTIONS TRADING IN NIFTY AND BANKNIFTY –

 Nifty and Bank Nifty are two popular indices in the Indian stock market, and both offer futures and options trading. Here's an overview of how futures and options trading work for Nifty and Bank Nifty:

 Futures Trading:

In futures trading, you buy or sell contracts that represent an underlying asset (in this case, the Nifty or Bank Nifty index) at a future date and at a predetermined price. Futures trading allows you to take a directional view on the market and profit from price movements. For example, if you believe that the Nifty will rise in the future, you can buy Nifty futures contracts. If the Nifty indeed rises, you can sell the futures contracts at a higher price and make a profit. Conversely, if you believe that the Nifty will fall, you can sell Nifty futures contracts. If the Nifty indeed falls, you can buy back the futures contracts at a lower price and make a profit.

 Options Trading:

In options trading, you buy or sell contracts that give you the right, but not the obligation, to buy (call option) or sell (put option) the underlying asset (in this case, the Nifty or Bank Nifty index) at a predetermined price (strike price) on or before a specific date (expiration date). Options trading allows you to take a directional view on the market and profit from price movements, but with limited risk. For example, if you believe that the Nifty will rise in the future, you can buy Nifty call options. If the Nifty indeed rises, you can exercise the call options and buy the Nifty at the lower strike price, then sell it at a higher market price to make a profit. Conversely, if you believe that the Nifty will fall, you can buy Nifty put options. If the Nifty indeed falls, you can exercise the put options and sell the Nifty at the higher strike price, then buy it back at a lower market price to make a profit.

 In summary, futures and options trading in Nifty and Bank Nifty offer traders an opportunity to profit from market movements, but it's important to remember that it's a high-risk activity that requires a good understanding of market dynamics and financial instruments. It's recommended to consult with a professional financial advisor before getting involved in futures and options trading.

HOW TO PUT TRAILING STOPLOSS IN FUTURE AND OPTIONS TRADING

 Trailing stop-loss is a technique used by traders to protect their profits and limit their losses in futures and options trading. It is an advanced order type that automatically adjusts the stop-loss level as the price of the underlying asset moves in favor of the trade.

 Here's how you can put a trailing stop-loss in futures and options trading:

 Identify the entry price: Before placing a trailing stop-loss order, you must have a clear entry price for your trade. This is the price at which you buy or sell the futures or options contract.

 Determine the stop-loss level: Once you have entered the trade, you need to determine the stop-loss level. This is the price at which you want to exit the trade if the market moves against you. In a trailing stop-loss order, the stop-loss level is dynamically adjusted based on the price movements of the underlying asset.

 Set the trailing stop-loss order: To set a trailing stop-loss order, you need to specify two parameters: the trail amount and the limit offset. The trail amount is the amount by which the stop-loss level should trail the market price, and the limit offset is the minimum price difference that the stop-loss level should maintain from the market price.

 For example, if you buy a Nifty futures contract at Rs. 14,000 and want to set a trailing stop-loss order with a trail amount of Rs. 100 and a limit offset of Rs. 50, the stop-loss level will be dynamically adjusted as follows:

 If the market price rises to Rs. 14,100, the stop-loss level will be set at Rs. 14,050 (Rs. 14,100 - Rs. 100 + Rs. 50).

If the market price falls to Rs. 14,050, the stop-loss level will remain at Rs. 14,050 (as the limit offset of Rs. 50 is maintained).

If the market price rises to Rs. 14,200, the stop-loss level will be adjusted to Rs. 14,150 (Rs. 14,200 - Rs. 100 + Rs. 50).

To place a trailing stop-loss order in futures and options trading, you need to select the trailing stop-loss order type from your trading platform and specify the trail amount and limit offset as per your trading strategy.

 It's important to note that trailing stop-loss orders do not guarantee a specific profit or loss as market movements can be volatile and unpredictable. Therefore, it's recommended to use trailing stop-loss orders as part of a well-defined trading plan that takes into account your risk appetite and trading objectives.

 NIFTY AND BANK NIFTY DIRECTION PREDICTION

 When it comes to investing in the NIFTY index or any other financial market, it's important to have a well-defined investment strategy that takes into account your financial goals, risk tolerance, and investment horizon. You may also want to consider factors such as market trends, economic indicators, global events, and political situations that may affect the direction of the market.

 It's also essential to diversify your portfolio to manage risk effectively. Diversification involves investing in a variety of assets across different sectors and industries, which can help to mitigate losses during periods of market volatility.

 Furthermore, it's advisable to stay disciplined and avoid making hasty investment decisions based on emotions or market hype. Maintaining a long-term perspective and sticking to your investment strategy can help you achieve your financial goals.

 Lastly, seeking the advice of a financial professional can be beneficial when making investment decisions. They can provide valuable insights, expertise, and guidance tailored to your unique financial situation.

HERE ARE TEN POPULAR AND USER FRIENDLY DEMAT ACCOUNT OPTIONS FOR BEGINNERS IN INDIA IN 2023:

 ·    Zerodha: It is one of the most popular discount brokers in India, with over 5 million clients. It offers a user-friendly platform, low brokerage fees, and no account opening charges.

 ·   Upstox: Another discount broker that offers a low brokerage fee and a user-friendly trading platform.

 ·    5paisa: It is a discount broker that offers low brokerage fees, a user-friendly platform, and a wide range of investment options.

 ·   Angel Broking: It is a full-service broker that offers a range of investment options, including equity, derivatives, and mutual funds. It offers a user-friendly platform and low brokerage fees.

 · HDFC Securities: It is a full-service broker that offers a range of investment options, including equity, derivatives, and mutual funds.

 ·    ICICI Direct: It is a full-service broker that offers a range of investment options, including equity, derivatives, and mutual funds. It offers a user-friendly platform and a range of research tools.

 · Kotak Securities: It is a full-service broker that offers a range of investment options, including equity, derivatives, and mutual funds. It offers a user-friendly platform and a range of research tools.

 ·  Sharekhan: It is a full-service broker that offers a range of investment options, including equity, derivatives, and mutual funds.

 ·    Motilal Oswal: It is a full-service broker that offers a range of investment options, including equity, derivatives, and mutual funds. It offers a user-friendly platform and a range of research tools.

 ·   SBI Securities: It is a full-service broker that offers a range of investment options, including equity, derivatives, and mutual funds.

 Before choosing a demat account, it is essential to research and compare the various options available based on your investment goals, risk appetite, and trading preferences.

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Disclaimer

The views shared in this article are solely those of the author and they should not be used as recommendations for financial transactions or investments. This content is for educational purposes. Please consult your financial advisor before making and investments.