Check All Frequently Asked Questions
How to Open a Demat Account?
How to Avoid Trading Mistakes in Stock Market?
Can I have 2 Demat Accounts?
What are the First Steps before Investing in Stock Market?
Who offers Lowest Brokerage Charges?
How to Transfer Shares from One Demat Account to Another?
How to Choose a Stock Broker?
How to Become a Smart Stock Market Investor?
What are the different Demat Account Charges?
When are Stock Market Holidays in 2019?
How NRI Trading Works in Stock Market?
Are Bank Based Stock Brokers Good?
How to Compare Stock Brokers?
How to Apply for an IPO?
How to Deal with a Cheat Stock Broker?
What do to if My Stock Broker goes Bust?
Is Demat Account number same as DP ID?
How to Close a Demat Account?
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Is Anand Rathi Good
How to Close Upstox Account
How to Change Bank Account in Upstox
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How to Close Religare Demat Account
How to Place Stop Loss in Zerodha Kite
how to do btst in Zerodha Kite
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Stock Market Questions and Answers
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Documents Required for Opening Trading Account
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How To Operate Angel Broking Demat Account?
What Is Delivery In Angel Broking?
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How to Trade in Angel Broking App?
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Is Demat Account Necessary for Trading
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How to Use Demat Account ICICI
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How to Join Share Market
Thinking of trading in the
share market and looking for specific requirements like is Demat account necessary for trading?
Now, to provide the answer for the same let’s first know what trading and
Demat account is?
Trading in the share market simply means buying and selling stocks and on the other hand, a Demat account is a process to secure your shares in the dematerialized form.
So, if you want to trade in the share market, then YES Demat account is necessary.
Is a Demat account necessary for all kinds of trades?
As you might know, that in the share market either you can do intraday or
delivery trading. Delivery trading as the name goes is the delivery of shares to the Demat account.
So here you need a Demat account.
But what about
intraday trading? Is it necessary to have a Demat account for intraday trading?
Is Demat Account Necessary for Intraday Trading?
Intraday trading, the form of trade where you can buy or sell stocks within the same trading session, i.e., you buy stocks in the morning and square-off your position before the market closes.
But there are some
rules of intraday trading that need to be followed.
Among those rules what is the rule for the Demat account?
For this, understand
why Demat account is required?
Demat account is for holding shares and whenever you trade, the exchange takes
T+2 days for trade settlement, i.e. if you buy shares on Monday then it gets credited to your account on Wednesday after 3:30 PM.
Now in intraday trading, since you are buying and selling shares within the same trading session, so here the above-mentioned rule is not applicable.
This fact clears that you
do not require a Demat account for intraday trading.
However, most of the stockbrokers like
Choice Broking provide you the benefit of a 2-in-1 account where the trader can activate both trading and Demat accounts at the same cost.
This opens the gateway for them to hold the securities for the long-term in any of the segments.
Opening a Demat account is mandatory to step your foot in the share market. But when it comes to doing intraday trading, then traders are held with a choice where they can choose to open both Demat or trading account or simply begin their journey with the trading account.
So, plan your trading journey in the stock market and open an account now.
In case of any query or doubt, feel free to reach us and we will assist you in opening a Demat account for FREE!
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