For the traders who love to go for the trading regularly need to find the broker who can help them in trading in different options in the share market. The market has ample options of trading which include futures, options and intraday as well as delivery. The pattern of trading in each of these options differs a lot. One needs to think about the factors such as risk, benefits and investment in each of them to decide the best platform in which he can trade and earn desired profits.
How to trade? Some basic requirements
This is the section for those who know trading but not aware of some of its requirements. The foremost important requirement here is to have dmat and trading accounts. These accounts can be opened with any brokers or broking firms in the market. The share brokers provide an application form that one needs to fill and provide with supportive documents. The list of document is already mentioned in the list from which one needs to provide any one or two as per the requirements.
The trader also needs to provide amount for margin fund on which he can have limit opened in the market. The margin money is the base for exposure and for the bulk traders it is much needed to check the limit of exposure against margin money. They try to avoid the lowest margin stock broker as they need good credit on their money which can help them trade in volume in the market. They know there is risk associated with more amount of margin money but at the same time there are also lots of benefits that make them drive for the same. Hence they prefer to have an account with a broker who can offer higher exposure to margin fund.
Why is margin money important?
For the traders it is necessary to have enough balance to carry out a trade as per the lot size and value of the shares. In intraday trading the broker offers credit to the trader as per his margin money. It may be 10 to 20 times of margin money available with the broker. One can have more trades if there is enough balance available in his trading account else the trade is rejected. To have the trade as required one needs to check the balance in his account. If there is no sufficient balance one can request the broker to open the credit and get the trade done. This is possible only if the parameters of offering the credit are satisfied by the trader and he has good relations with the broker. In other case one has to balance the account first and then go for the concerned trade.
From the broker as well as the trader point of view the balance or exposure to margin money is much required. Hence in most of the cases the broker offers limit only if he knows the client well and trust him.