{"id":4271,"date":"2021-08-31T17:02:00","date_gmt":"2021-08-31T11:32:00","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=4271"},"modified":"2022-08-25T18:53:47","modified_gmt":"2022-08-25T13:23:47","slug":"online-trading","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/online-trading\/","title":{"rendered":"What Is Online Trading &#8211; 2022 Beginner&#8217;s Guide For for Share\/Stock Trading"},"content":{"rendered":"\n<p>The digitization of platforms has revolutionised the way we transact. Whether you need to do daily grocery shopping or <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a> in a house, the online marketplace provides you with an instant solution. Even if you want to trade in securities, you can go online and begin your trading journey. This article delves into what is online trading, the benefits of online trading, and how to trade online. Before we jump to the nitty-gritty of online trading, let\u2019s understand what is trading in the first place.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#What-is-trading\" title=\"What is trading?\">What is trading?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#What-is-online-trading\" title=\"What is online trading?\">What is online trading?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#How-to-trade-online\" title=\"How to trade online?\">How to trade online?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#A-broker\" title=\"A broker\">A broker<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#A-trading-account-linked-with-your-savings-account\" title=\"A trading account linked with your savings account\">A trading account linked with your savings account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#A-Demat-account\" title=\"A Demat account\">A Demat account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#Access-to-digital-payment-modes\" title=\"Access to digital payment modes\">Access to digital payment modes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#A-computer-or-a-smartphone-with-an-active-internet-connection\" title=\"A computer or a smartphone with an active internet connection\">A computer or a smartphone with an active internet connection<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#Benefits-of-online-trading\" title=\"Benefits of online trading\">Benefits of online trading<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#Simple-and-easy-to-use\" title=\"Simple and easy to use\">Simple and easy to use<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#Easy-access\" title=\"Easy access\">Easy access<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#Time-and-cost-effective\" title=\"Time and cost-effective\">Time and cost-effective<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#Control-your-activities\" title=\"Control your activities\">Control your activities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#Easy-access-to-trading-records\" title=\"Easy access to trading records\">Easy access to trading records<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#Easy-access-to-trading-charts-and-analysis\" title=\"Easy access to trading charts and analysis\">Easy access to trading charts and analysis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#All-round-monitoring\" title=\"All-round monitoring\">All-round monitoring<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#Things-to-keep-in-mind\" title=\"Things to keep in mind\">Things to keep in mind<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.tickertape.in\/blog\/online-trading\/#The-bottom-line\" title=\"The bottom line\">The bottom line<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"trading\"><span class=\"ez-toc-section\" id=\"What-is-trading\"><\/span><strong>What is trading<\/strong><strong>?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Trading, with respect to the capital market, is buying and selling of securities with a view to make a profit from the difference in price. You can buy different types of securities and then sell them at a later time or date to book profits or to cut your losses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"online\"><span class=\"ez-toc-section\" id=\"What-is-online-trading\"><\/span><strong>What is online trading?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Trading when done through the online medium is called online trading. Thus, online trading involves buying and selling of securities on the financial marketplace using web systems or mobile applications on your smartphone, through the internet. The dematerialization of shares facilitated and paved the way for online trading. Stocks are the most commonly traded securities on online platforms. However, you can also trade in bonds, commodities, currencies, and other securities as per your choice.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"trade\"><span class=\"ez-toc-section\" id=\"How-to-trade-online\"><\/span><strong>How to trade online?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For <a href=\"https:\/\/www.tickertape.in\/blog\/trading-vs-investing\/?utm_source=blog&amp;utm_medium=article\">trading<\/a> online you need a few basic things. These include the following &#8211;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A-broker\"><\/span><strong>A broker<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Trading in <a href=\"https:\/\/www.tickertape.in\/blog\/5-financial-instruments-to-invest\/?utm_source=blog&amp;utm_medium=article\">stocks<\/a> and commodities can only be done through a broker. You need to connect with a broker and open a brokerage account to be able to buy or sell securities. There are two primary types of brokers you may choose from &#8211;<\/p>\n\n\n\n<ul><li><strong>Discount brokers &#8211;<\/strong> these brokers charge a very minimal fee for account opening. The commission they charge on each trade is either minimal or zero. However, the service is limited.<\/li><\/ul>\n\n\n\n<ul><li><strong>Full-service brokers &#8211;<\/strong> these brokers often charge a fee for account opening and a commission on each trade. However, you can get expert trading advice from these brokers and they help you with online trading.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A-trading-account-linked-with-your-savings-account\"><\/span><strong>A trading account linked with your savings account<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To start trading, you would need a <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-a-trading-account\/\">trading account<\/a> that is used to pay for the securities that you buy. Similarly, the amount received on selling the security is also credited to the trading account. The trading account, in turn, should be linked with your savings bank account so that money can be debited or credited every time you trade.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A-Demat-account\"><\/span><strong>A Demat account<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A Demat account acts as storage for the securities that you buy. Securities are issued in a dematerialised form and they are stored in the Demat account.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Access-to-digital-payment-modes\"><\/span><strong>Access to digital payment modes<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When you trade online, you would need to make and accept payments through digital modes only. So, have access to digital payment modes which usually include the net banking facility or your savings account linked UPI ID.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A-computer-or-a-smartphone-with-an-active-internet-connection\"><\/span><strong>A computer or a smartphone with an active internet connection<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Lastly, you need an internet-enabled computer or a smartphone with which you can place trades and execute your orders on a real-time basis.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"benefits\"><span class=\"ez-toc-section\" id=\"Benefits-of-online-trading\"><\/span><strong>Benefits of online trading<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Online trading has a host of benefits which is why it has become popular among traders and investors alike as the preferred mode of trading in India. Some of the benefits of trading online include the following &#8211;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Simple-and-easy-to-use\"><\/span><strong>Simple and easy to use<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>First and foremost, online trading is quite simple and easy to use. The user interface of all major brokerage houses is simple, allowing you to buy and sell easily. Even if you are not very tech-savvy, you can trade online without much hassle.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Easy-access\"><\/span><strong>Easy access<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Nowadays, internet access has become common and most investors use a smartphone. As such, compared to the conventional mode of trading offline, online trading has become easily accessible. You can simply open the broker\u2019s website or download the mobile app and start trading, at your convenience.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Time-and-cost-effective\"><\/span><strong>Time and cost-effective<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Online trading happens in real-time. As such, it is time-saving. You can place your orders and the orders are executed at the earliest. Moreover, with the online mode, brokers are not required to maintain offline records of all transactions. This reduces their costs thereby reducing their commission and charge structure. This cost-saving is, then, passed on to investors and you can <a href=\"https:\/\/www.tickertape.in\/blog\/5-simple-lifestyle-changes-to-save-more\/\">save money<\/a> on brokerage and transaction costs when you trade online<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Control-your-activities\"><\/span><strong>Control your activities<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>With online trading, you can log into your trading account and monitor your transactions any time during the trading session from wherever you are.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Easy-access-to-trading-records\"><\/span><strong>Easy access to trading records<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>All your trading history and transaction records are automatically updated in your online account. You can, thus, access these records online, whenever and wherever.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Easy-access-to-trading-charts-and-analysis\"><\/span><strong>Easy access to trading charts and analysis<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Analysts and traders rely on trading charts and analysis to make trading decisions. These charting and analysis tools are in-built and available online and can be accessed with a few clicks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"All-round-monitoring\"><\/span><strong>All-round monitoring<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>With ease of access and control over your account, you can monitor your portfolio regularly and whenever you want. This allows you to check for possible deviations and take the necessary corrective measures to make your portfolio profitable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"things\"><span class=\"ez-toc-section\" id=\"Things-to-keep-in-mind\"><\/span><strong>Things to keep in mind<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Though online trading is simple and advantageous, here are a few things that you should keep in mind when trading online &#8211;<\/p>\n\n\n\n<ul><li>Understand the capital markets before you begin your journey into online trade. Know the securities that you trade in so that you can pick the right ones for your portfolio.<\/li><li>Always check the credentials of a broker before you open an account with them. Your broker should be registered with <a href=\"https:\/\/www.tickertape.in\/blog\/securities-and-exchange-board-of-india-functions-powers-and-regulations-of-sebi\/?utm_source=blog&amp;utm_medium=article\">SEBI<\/a> and have a good reputation to avoid any fraudulent activities.<\/li><li>Protect your computer or smartphone with the necessary anti-virus software so that the history of your online trade, financial records, and personal details do not fall prey to cyberattacks.<\/li><li>Keep changing the password of your online trading account regularly to prevent any misuse.&nbsp;<\/li><li>The financial markets are risky avenues. Start your trading journey after you understand the risks involved and if you have a healthy risk appetite.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The-bottom-line\"><\/span><strong>The bottom line<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Online trading has become the norm in today\u2019s world when the offline mode is slowly becoming obsolete. So, if you are a potential investor and want to invest in the capital markets, understand what is online trading and how it works. Also, learn how to trade online so that you fulfil the basic requirements of online trading. Lastly, be an informed investor and understand how the capital markets work so that you can trade successfully.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Want to know how to trade online? Click here to get step by step information on how to do share trading online &#038; find out the best tips for your investment in stocks!<\/p>\n","protected":false},"author":27,"featured_media":4168,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[9],"tags":[666,663,662,665,664],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/08\/1-1-2.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4271"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=4271"}],"version-history":[{"count":4,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4271\/revisions"}],"predecessor-version":[{"id":8855,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4271\/revisions\/8855"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/4168"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=4271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=4271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=4271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}