what is trading procedure

Dear student,

For trading in stock exchange one first need to choose a broker who will buy/sell securities on behalf of investor.
2) After choosing broker, one needs to open a demat account with a depository to trade in securities in listed form.
3) The next step is to place order through broker via telephone, mail, etc.
4) The broker then buy/sell securities as per the instructions of the broker.
5) The broker then issues contract note containing details of securities and hand over a signed copy of same to the client.
6) At last brokers do settlement on behalf of client.


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Demat (Dematerialized) account refer to an account which an Indian citizen must open with the depository participant (banks or stock brokers) to trade in listed securities in electronic form. Second step in trading procedure is to open a Demat account. ... The securities are held in the electronic form by a depository
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