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What Is Trading Account & How It Works - Open Free Demat Account

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What Is Trading Account & How It Works - Open Free Demat Account

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  1. What Is Trading Account & How It Works

  2. A trading account is used to buy or sell equity shares in a stock market. Previously, the stock exchange functioned on the open outcry system. In this, the traders used hand signals and verbal communication to convey their buying/selling decisions.  About Trading Account

  3. A trading account acts like a link between demat account and bank account of an investor. When an investor wants to buy shares, he places an order through his trading account. The said transaction goes for processing in the stock exchange. Upon execution, the required number of shares get credited into his demat account and a proportionate sum gets deducted from his the bank account. How does a Trading Account work?

  4. Thank You

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