What is trading procedure at stock exchange?

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In: Financial Market

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Mike Johnson · Answer 1 · June 24, 2020

Trading Procedure at Stock Exchange

Selection of a Broker: Selecting the broker is the first step, A broker is an individual or firm who will buy/sell securities on behalf of the investor.
Opening Demat Account with Depository: After that broker opens a Demat account for You. A Demat Account or Dematerialised Account provides the facility of holding shares and securities in an electronic format.
Placing the Order: After that, you place an order with the broker either personally or on the phone call, email, etc. with the name of stock and quantity
Executing the Order: Broker will buy or sell the stock with reference to your order As per the Instructions. The broker will charge their brokerage charges on every order.
Settlement: This is the last stage in this the actual stock transfer to your account. there is two condition
I). Interday: Intraday trades involve buying and selling a stock within a trading session, i.e. on the same day. When you Buy share for selling on the same day
II). Delivery: The stocks you buy will be added to your Demat account. They remain in your possession until you sell them, That can be in days, weeks, months, or years.