Home/Blogs/Procedure of Purchasing and Selling Shares Through Demat Account

Procedure of Purchasing and Selling Shares Through Demat Account

stock market
Published Date: 23 Apr 2021Updated Date: 29 Nov 20236 mins readBy MOFSL
share market demat account

So you’ve decided to invest in the stock market but aren’t very sure how to go about it. With the convenience of demat accounts purchasing and selling shares has become as simple as clicking a button. Read on to find out how to purchase and sell shares in the equity markets.

Opening a Online Demat Account

 The first thing you need to participate in the equity markets is to open a demat account. A demat account is where your equities are held in dematerialized form. There are a number of brokers that offer the facility of opening an online demat account. However one must first conduct thorough research about the features being offered by each broker, and the various charges being levied by them before settling on the best broker to open a Demat account. With a reputed broker such as Motilal Oswal, the procedure for opening a demat account is simple and hassle-free. You only have to fill up a simple application form and provide copies of KYC documents such as Aadhar card, PAN card, and Form-16. Additionally, you would be required to link your bank account with your demat account so that you can use the funds in your linked bank account to purchase shares.  Once your demat account information is verified and your bank account linked, you’re good to go.

Purchasing and Selling Shares Through Your Demat Account

Once you’ve opened your demat account, you can start buying and selling shares. To do this, first of all, it is necessary to familiarize yourself with the user interface of your trading platform. Make sure you are comfortable with using all its functionalities such as cover orders, market orders, bracket orders, limit orders, etc.  This is important as although demat accounts provide you the convenience of one-click transactions, a misplaced click can also result in making a wrong trading move and a potential financial loss.

It is also imperative to familiarize yourself with the brokerage and transaction charges being levied by your broker. A brokerage is usually charged on each executed order by the broker. It is best to open a demat account with a broker that levies the lowest brokerage charges. There are different brokerage charges for intraday trades and equity delivery. Intraday trading is when you enter and exit a trade on the same day, while equity delivery is when you hold your shares in your account and sell on a later date. To purchase or sell a share simply look up the required stock on the trading platform provided by your broker and place a buy or sell order from the platform.

Conclusion

Purchasing and selling shares in the stock market requires opening a demat account. It is important to select a reliable and reputed broker to open a demat account with as your Demat account is where your shares are stored in dematerialized form. Good brokers offer a hassle-free trading experience and low brokerage charges. It is important to familiarize oneself with the trading platform before investing any real money in the markets. Once this is done, purchasing and selling shares is simply a matter of selecting an equity and clicking the buy/sell button on your trading platform.

 

Popular Stocks:  ONGC Share Price | SBI Life Share Price | UPL Share Price | TCS Share Price | Titan Share Price

You may also like…

Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
Open Demat Account
I wish to talk in South Indian language
By proceeding you’re agree to our T&C