Get the right broker for your trading


For the offline traders who trade with the help of a terminal operator, support of a broker holds great importance. The broker here does not offer only trading support but also shares his experience and perform a role of a guide as well as an advisor in the market. For the traders who are with limited knowledge, it is much required to have someone who is trustworthy enough and with knowledge of the market that can guide them to enter and exit from the trades. In this market, every decision matters a lot,and hence one must know the trades as well as concerned companies in detail before going for the transaction.

The broker:

The broker is not only about advice he can also help one understand the pros and cons of different segments. Therefore if one wants to go for some different kind of trades also knowing the profile of the client the best stock brokers in India warn him. It is indeed a great job where one can be saved from making mistakes in the market.  

The trades:

The market has different segments where different types of clients can trade. These segments include cash, derivatives,and currency. The cash segment has intraday and delivery based trades where the buyer can choose the units. These units direct the risk of the trade or profit opportunities. In case one does not want to take much risk and want to invest the amount, he can go for the delivery trade where the simple rule is just to pay the amount, buy the shares and keep for long term. Meanwhile one can have income in the form of a dividend in case the company declares or other benefits such as bonus shares or share splitting by the company. If one feels that the shares can fetch good value now, after a few days, months or years, he can sell them and get the profit.

In the intraday one has to decide if he wants to sell or buy the shares and both of them have to be done in the same trading session only. Hence here one has to make quick decisions which may lead to profit or loss also.

The derivative segment has future and options where one needs to go for a specific contract. Here one does not have units like cash segment and hence pay the margin money for the whole contract only. The contract here is provided with an expiry date and hence before that one has to sell or buy the same. In this type of trade one can have more time and more opportunities of making a profit but at the same time the chances for losses are also high,and hence one needs to take the decision prudently about buying and selling the contracts. The market trend, price movement,and technical analysis can help one get a viewof the same. A right decision in this segment trading can make one rich in a few months only.

No comments:

Powered by Blogger.