Home » Basics Of A Trading Account That You Must Know

Basics Of A Trading Account That You Must Know

by Uneeb Khan
trading account


Since 2020, the financial markets have rallied to their all-time highs. This came as a shock to everyone because the market was at an all-time low in March. When Covid-19 struck, countries started imposing nationwide lockdowns. Which affected different sectors of business all around the world. 

Indian indices, such as Nifty50 and Sensex bottomed out on 24th March 2020. Since then, the markets haven’t looked back. Now, the main reason for this rally is said to be the increasing retail participation. 

In March 2020 when the markets were fairly undervalued it gained a lot of attraction from common people. Since casinos and betting were also shut, therefore the number of day traders increased and so did the volatility in the market. 

If you are a beginner and want to take advantage of the bull run you can start by opening a free trading account. To open a trading account online you can contact the broker after a thorough research.  Then, follow the steps discussed below. 

Earlier, investors had to visit the broker’s office to open a demat and trading account. Thanks to technology, the trend has changed. An investor can directly visit the broker’s website and click on the “open new account” tab. 

After that, you will be redirected to a new webpage where you will have to fill in the application form. The required list of documents will be provided to you. Those documents have to be scanned and uploaded on the website. The broker will then verify the documents. 

Post verification, the broker will email an agreement that has to be signed by the account opener. Then, the broker will provide demat account login credentials. 

These are the steps you need to follow to open a trading account online. The entire process can be processed digitally. Let us understand the working of the trading account. 

Working Of A Trading Account 

The trading account is a platform provided by the broker that enables you to buy and sell financial securities. The trading account’s servers are directly connected to the exchange’s servers. Due to this, the trading account showcases live prices on the platform. 

Once you place the buy order on the trading platform, the servers try to match your order with a seller at the same price. After the asking price matches the bid price, money is debited from your account, and shares are credited back into your account. Similarly, if the shares are sold. They are offloaded from the online demat account with the help of a trading account. The trading account overlooks this transaction and makes sure there is no scope of error left. 

Eligibility Criteria 

  • To get access to a trading account you need to be above 18 years of age. In the case of a minor, the broker does not give access to the trading account. Once the minor turns into a major, he or she can have access to it and start selling securities. 
  • It is compulsory to have a PAN card. Even in the case of a minor you need to have a minor’s pan card. 
  • Along with the PAN card, it is mandatory to have a bank account. Also, to open a trading account online you need to have a demat account. 


One thing beginners should remember is that choosing the right broker is important. Do thorough research before choosing a broker as it is a crucial part of the financial journey. 

Also read:- Can FTX Exchange Be Considered A Stand-Out Platform?

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