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What You Should Know about Trading Account
June 06 , 2012

A trading account is an account you use to buy and sell shares or derivatives in the stock market. Today, all trading happens in demat form only, and the shares get credited to your demat account. You would typically open a trading account with a registered stock broker. Demat and trading accounts may be taken with the same broker, or with different brokers.

Trading accounts can be online, where you yourself login to your account on the internet and place orders. They may also be offline, where you give instructions to your broker on phone, and then provide an instruction slip to confirm the order. The broker would usually charge a brokerage that is a percentage of the value of shares bought or sold.

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