Difference Between Demat and Trading Account?
For maximum people, who are newer to be invested in the share trading face the high confusion between a trading and a Demat account. Now, let us attempt to understand the essential difference between the Demat & trading account and what is the connection between them.
Demat Account: – Account, where you can hold your shares or commodities in the de-materialize form or in the electronic form. It can be utilized only for the saving of shares or commodities and not for the transaction. The Demat account is usually for the people, who would similar to spend in the market and hold the commodities in the electronic form.
Once you start a demat account, you require to pay AMC (Annual Management Charges) depending on the broker, you are dealing with us. The broker can you Free Mcx Tips and Live Market Updates for Gold Trading, Commodity Tips, Live Stock Tips, Online Nifty Tips for better trading.
Trading Account: – The trading account mainly used for the putting buy & sell orders. The main deal of shares is complete through the trading account. The trading account is typically for traders in the derivative segments such as Index, Commodities, stocks, Currencies futures & Options and particularly for those who trade in the Cash Segment. The trading account does not magnetize any AMC. The trading account acts like an intermediary between your Demate account and your saving account. Now let us look how Demat account, savings account & trading account are associated.
1) Consider, you have an Infosys stock in your Demat account in the electronic form.
2) Now you desire to pay money for HDFC Bank stock. For that, first you have to shift money from a savings account to the share trading account.
3) You pay money for HDFC Bank stock from the trader side or stock market.
4) You shift money to the seller and purchases stock HDFC Bank stock.
5) which then goes into the demat account. However, if you want to sell Infosys stock then the same stock will get transferred from the demat account to the trading account.
Once the sale is complete, the money earned is transferred to the savings account. To simplify, in case you are buying shares, the trading account pulls money from your savings account and buys shares which will be then transferred to your Demat account. While, selling shares, the trading account pulls shares from your demat account and sells them in the stock market. The money earned on it is then transferred to your savings account.http://www.trifidresearch.com/blog/difference-between-demat-and-trading-accountDifference Between Demat and Trading Account?commodity tipsMCX Tipscommodity tips,Free Commodity Tips,Free MCX Tips,mcx tips