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Q.

What is the difference between online trading account and dmat account.
cant a dmat account be used for online trading of shares?

Tags: dmat account, online trading of shares, difference between online trading account
Asked by meenal gupta, 07 Dec '07 11:05 am
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Answers (7)

1.

Online trading account is interface between your demat account and bank account...the money is transfer from the bank is store in the trading account ....and when you purchase the shares and holding it then it goes to the your demat account......and when u sell your shares it from trading account not from trading account.....
Answered by abhijeet, 05 Aug '10 05:52 pm

 
  
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2.

I try to explain you :- if you want to deposit money in bank you need to open a bank account, money/ cash is a real therefore you can hold it with you in your poket. same way earlier time, all shares are in certificate form every company issue certificates for each share that you can hold with you. but now days everything is electronically no need to carry physical shares all share trading electronically posted to demat account.

these demat accounts are linked an another account is called online trading account

online share trading companies give you a software that can be installed at your desktop and also your bank account is linked with this online trading account.

after that you dont need to go any where to sell purchase of shares
one more thing you need internat connection

and you can start from monday to friday ...more
Answered by devender sharma, 22 Feb '08 01:07 pm

 
  
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3.

Well remember the days when you got physical share certificates when you bought shares. They are gone now. They have been replaced with a "dematerialized" account or demat account. So when you buy 100 shares of XYZ, they go into the demat account. The actual process of buying and selling shares will have to be done from the trading account.
Answered by vamshi krishna, 18 Jan '08 10:51 am

 
  
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4.

Friend i think you are the beginer of the market. dmat accout ,bankaccount N trading account.
whwn u buy some share that is creited to your demat account. & when u sell the purchase shares that time it is a debited to your demat account.
demat account has 2 type a)with POA(with power of attorny)b)without POA
in first case you give authority to broker to deduct or debit the shares from your demat account when u sell.
in 2nd case you have to provideDIS(delivary instruction slip)to the broker.when u sell. if you are unable to provide DIS & the share sold then this transaction goes for AUCTION . this is the risky way. so better to give POA to broker.
trading account is the platform where you entered with your login id & passward with a brokers site .after that by useing the broker platform he will allow you trade in stock market.
now i hope u have got the information about demat account trading account.

Answered by deepak kulkarni, 07 Dec '07 12:14 pm

 
  
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5.

Demat account is like your savings account for cash in a bank, in demat account you store shares in electronic records. Online trading is one of the methods for trading, like in bank you may operate with a cheque book or withdrawal slip or net banking , in online trading you are using the power of internet to place the orders for buying or selling shares, I hope this is clear to you now.
Answered by Netguru ji, 07 Dec '07 11:25 am

 
  
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6.

Demat is needed to trade shares, its compulsory. u can trade online or offline when u have a demat and then register with a broker. online: - always on the internet watching, buying, selling live. offline buying selling thru sms, phone.
Answered by SOMSUVRA CHATTERJEE, 07 Dec '07 11:09 am

 
  
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7.

Demat account is reqd 4 both online and offline trading.
Answered by Manu John, 07 Dec '07 11:06 am

 
  
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