Can any body please explain the differences between Intraday and Delivery Trading of shares. I want to enter the share market with about Rs.2000, but I am not 18. I just want to experiment with this. Is it possible for me and please explain what I would require.
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Intra-day trades are fraught with risks as you have to square off your position on the day itself on the other in delivery trades you have to take delivery of the shares and can wait for the right opportunity to book profits by selling off your holdings!But before you start trading you need open a demat account.
@Chinmoy,
Thanks for throwing light on this question.I have one more question.Should we seek the help of agencies or banks to open a dmat account?.How to ensure whether the agency is approved of doing trading?.
You can open a demat account with any of the depository participants.Apart from most of our banks there are broking outfits which provide comprehensive services like demat,on-line trading etc.
Thanks for the information,Chinmoy.Recently i had a bad experience with an agency in which the person traded without my concern.The reason he quoted was unknowingly he had traded and it was a mistake.So,It has become a set back in the interest which i had towards share market.
Intraday transaction implies that you buy and sell certain scrips on the same day. Hence you need neither give nor take the scrips. You either gain or lose depending on the price difference. If you buy on a day but will not sell immediately or withing the trading cycle, you need to get delivery of the shares. For more details and active trading, contact a broker. You need a PANCARD by Income Tax Department and open a DEMAT account for this.
G. K. Ajmani Tax consultant http://gkajmani-mystraythoughts.blogspot.com/
