How to invest in shares with only Rs. 5000?
Online Trading Platforms
Previously, we named some trading applications like NEAT/BOLT that are used for trading stocks electronically. However, this was not the case a few years ago.
Earlier, there was an 'Open OutCry' system where buyers and sellers physically meet to transact. But recently, easy accessibility to internet connection led us to Online trading platforms.
Online trading platforms allow you to trade via the internet by using the trading software provided by the broker. As a beginner, the trading platform might confuse you but it is essential to have a thorough understanding of the trading platform so as to efficiently use the various tools provided by these platforms. You can even transfer your funds from your bank account to your share trading account instantly by just a click of a mouse.
What are the features of online trading platforms?
- Provides you with an independent automated trading platform;
- Access to various online tools to perform technical analysis of stocks;
- You will have full and direct control over your portfolio;
- You can trade on both the markets i.e. NSE and BSE simultaneously by using the same account;
- Keeps you informed about the latest market news and movements;
- No delays in the execution of trades in comparison to offline trading;
- There are no geographical and time limitations. You can access your account at any time of your day and from any part of the world.
But, make sure to check the speed and the quality of services provided by the trading software by your broker. You can check online reviews for this purpose.
How to get started with the online trading platform?
- User ID and password: Your online trading account is protected by a login ID and password. Login ID is provided by the broker and the password is needed to be set up by you. You should change your password frequently for the safety of your account. Also, make sure to opt-in for additional security measures available for your account so as to ensure the safety of your account.
- Market screen: It is an essential screen in your trading account. It gives you an insight into the current market position of the selected stock in a tabular format. Each row presents the data regarding one share and displays the script name, the last traded price, last traded quantity, best bid and offer rate, total transacted volume, etc.
You can configure the market watch window and decide which column you wish to view and which not to. You can even change the way the table looks in terms of colors, size, and choose whether to use a separator between row and columns or not. All the information on the market watch window is updated dynamically in real-time and gives you live market updates without refreshing the screen. Understanding the market screen might sound intimidating in the beginning but you will find it easy to use eventually. It is the prime controlling window in your trading account to initiate all your trading actions. You can trade in shares by just simply clicking on the market watch window.
- Indices display: Your trading screen should also display indices at an appropriate location on your screen. This helps you know the movements in all the indices primarily Sensex and Nifty. It should be customizable to display the results of all the indices you want to follow. This helps the investors in getting an overall insight of the market sentiments so as to execute his trades accordingly.
- Reports: It includes the order book, trade book, margin, net positions, exercise book, and the portfolio. These reports are dynamically updated as soon as any transaction is executed without any need of refreshing them. You can perform various trading actions in the reports itself. These reports can be saved offline as well in a text or CSV format.
- Charts: All the trading platforms provide the chart facility nowadays. These charts enable the investor to:
- Create an intraday tick-by-tick charts with the historical data;
- Create a chart containing data of multiple companies;
- Open multiple charts simultaneously;
- Access unique drawing tools that include the trend line customization and Fibonacci tools;
- Allows you to create different types of charts such as line, bar, and candlestick;
- Provides you with a lot of analysis options by using the indicators like MACD, RSI, Williams % R and other indicators useful for analysing the stocks;
- An option to save the chart offline on your system
- Market analyser: This feature provides you the information regarding top traded, top gainers, and top losers with the percentage change in total volume and value. It provides you with the names of the shares that touched their highest and lowest in the 52 weeks. It helps in identifying the large trades and gives you an insight into the scrip activities happening in the market.