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Trading is the process of buying and selling the shares in the share market or the stock market. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are the two stock exchanges where shares trading occurs. In India, only a few people are aware of trading in the share market or stock market before investing in them. Apart from them, only a few are having their trading account. 

To start trading you must have the Best Trading Account In India. Trading accounts in India are provided by depositories like National Securities Depository Limited (NSDL) and Central Securities Depository Limited (CDSL). 

In this article, we will guide you to create your Demat account and trading account. Also, we will guide you on how to start online trading in India. The upcoming stuff might be a little challenging to understand, but you can surely know about online trading once you know the basics.

Demat Account

A Demat account is an account that will hold all your physical and financial documents in an electronic or dematerialized form. This will reduce your paperwork and also the documents in the Demat account as with maximum security. Now, I will guide to open a Demat account with few steps.

Step 1: Contact National Securities Depository Limited (NSDL) and Central Securities Depository Limited (CDSL).

Step 2: Fill the opening account form with all the details that are listed with proper proofs and documents.

Step 3: Sign the agreement that provides you with the rights and duties as an investor.

Step 4: Get a copy of the agreement with the list of related charges.

Step 5: Your account will be created, and you will be receiving a Beneficial Owner Identification Number (BIO), which is your Demat account number.

Trading account

A trading account is an account that is used to buy and sell shares in the stock market. After creating a Demat account, you can sell your shares using a Trading account. It acts as a medium between your savings account and Demat account. Now, let us tell you how to open a trading account with a few steps.

Step 1: Select a firm or broker, which is your choice by knowing the different brokerage values and other chargers.

Step 2: Inform the respective firm or broker about your need to open a trading account.

Step 3: Fill the opening account form with all the details that are listed with proper proofs and documents.

Step 4: The corresponding authorities will verify your application, which will take some time.

Step 5: After receiving the details, your trading account will be created, and you can begin the online trading in share or stock markets.

After creating a Demat account and trading account, you will be all set to begin the online trading. But, always know the basics and get into the trading. It would be best if you learn the trading terms, their flow, functions, etc. In the upcoming, we will be discussing the areas that you need to focus on to start online trading.

Increase your financial knowledge

Not all are good on the financial side, so it’s better to increase your knowledge and start trading. The better you learn and know about the financial details, the better your success in the stock market. 

The basics of Book value, Dividend, debt/equity ratio, P/E ratio, P/BV, Earnings per Share (EPS), Return on Equity (ROE), Return on Capital Employed (ROGE) and so on. Every individual should well cover these things before you try to analyze a stock detail. There are lots of sources to know the basics, do visit them.

Create your own Dummy Portfolio

The portfolio is the best to hold all your collections of stock from various sectors. A portfolio will show the shares that you own from which sector, which is from different sectors or the same sector. Learn to create a Portfolio as a good portfolio will increase your profits and minimizes the risk.

Follow the stocks regularly

The last step before getting into online trading is to know the ways to buy a stock from the market. So follow the stocks and learn the basics, the way of approach, and so on. It will be easy for you to track the stocks, and you will know the best time to buy and sell when you are in online trading. From our side, it is recommended to follow stocks for at least one month. A proper understanding of stocks will help you to buy them in the future.

Conclusion

To start online trading is not an easy job; you need to excel in basics. I hope that the details that we provided will be helpful for your journey to begin in online trading. 

Are you making money transactions through digital payments? If your answer yes means Check is entirely a new thing for you. In some cases, you are forced to give a check for some payments, so you must know the way to write a check. There are so many things that need to be considered while filling a check. This guide will tell you the step by step procedure to write a check correctly, so follow the below mentions steps.

Important Terms in Filling a Check

Before getting into the way to write a check, I want to know you few important terms in Check which are shown below. Since below mentioned terms are important one, if you need pictorial representation for it means you can check it here.

• Date
• Name
• Value(in $)
• Value(in words)
• Signature
• Memo

Date

There will be a column at the upper right side of every check, which is reserved for writing the date. A date may be either today’s date or future date; however, it does not make any impact because every check becomes valid after making the signature.

Example: November 30, 2019

Name

Then there is a line for writing the name of the person who receives the payment. It may be an individual, a trust, business, or any entity which has a valid bank account to deposit the check. Name is a significant thing in the check because a small mistake in spelling can cause the status of check to invalid one, so make sure before writing the name.

Example: Madison Joe

Value(in $):

Here comes the main thing that why the check is to be written. Value(in $) will be on the right side of the check, where you need to write only the number of the exact amount to be transferred from your account, so don’t write higher values :P.

Example : $89,243.78

Value(in words):

After writing the value in $, you must write the same value as in words too it is for confirmation purpose. So check the number value that you have written and write those values as words in this section where dollar must be in words and cents can either be numerical or alphabet.

Example: Eighty-nine thousand two hundred forty-three dollars and 78 cents

Signature

At last, you need to add your signature after verifying every detail on the check. The signature must be the same as the one which you did while opening your bank account

Memo

This section is the additional one filling this is up to your choice. Here you can write why the check is given.

How to write a check:

Follow the below-mentioned steps to fill out your check

• Fill the date in the top right corner of the check
• Write the name of the recipient on “Pay to” section
• Enter the value to be transferred from your account to recipient in numerical values with $ symbol
• Now write the word of the value that you have written above
• Then make your signature at the end
• Additionally, you can write the memo to your check which is basically a note for the payment

Important points while filling a Check

• Fill your check as neat as possible
• Don’t use cursive letters
• If you make any mistake on the check, tear it and throw away
• Double-check every spelling wrote on the check

If possible write and send me a check too 😛