Knowledge Center Fundamental Analysis
The first steps in the trading process is opening a trading account and a Demat account. A few banks and registered members of exchanges (brokers) offer this facility to clients. The trading account can be linked to a bank account and is used to place buy and sell orders on the stock exchange. The shares are held electronically in the Demat account, which permits transfers when you buy or sell shares using your trading account.
A Demat account can be said as what it is to shares, similar to what bank accounts are to money. All you need to do is, select a service provider who is a depository participant with either National Securities Depository Ltd (NSDL) or Central Depository Services Ltd (CDSL) and complete the application process.
Once your application passes the examination, you will be given an account number or a client ID to access your account online. The rules and regulations will specify the payment of annual fees, transaction charges, and any other associated fees.
A commodity Demat account has to be opened with a commodity broker registered with the National Securities Depository Ltd (NSDL), and this will enable you to trade with the National Commodity and Derivative Exchange (NCDEX), the National Multi Commodity Exchange of India Ltd, and the Multi Commodity Exchange of India Ltd (MCX). You can trade in agricultural, metal, and energy commodities with a commodity trading account.
Getting a forex trading account is more or less similar to the others, and once this is set up, you can buy and sell any currency.
Preference includes buying currency from the NSE or the MCX. One noteworthy differentiation in the forex market is that you can buy futures to be settled up to 12 months later.
Several clients from brokerage houses and banks might be eligible for perks such as unlimited trading and zero brokerage in all these segments. All three accounts can be opened simultaneously.