InvestorQ : How does the operation of trading differ from demat account?
Niraja Mehta made post

How does the operation of trading differ from demat account?

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Ria Roy answered.
3 years ago
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The way the two accounts are operated is different. A demat account provides you the facility to retain your financial instruments in an electronic format. In the old days, shares were held as certificates in paper form. That used to be too cumbersome. Instead, the demat account allows you to hold these shares in electronic format. The trading account performs the very act of buying and selling securities. Shares are debited from your Demat account and are sold in the market through the trading account. Similarly, when you buy shares through the trading account, these shares will be credited to your demat account on a T+2 date and you can hold them in electronic form.
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