InvestorQ : Is trading in stocks and shares open to anybody in India and how do you trade and how do you invest?
Priyanka Jain made post

Is trading in stocks and shares open to anybody in India and how do you trade and how do you invest?

Answer
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Swati Naik answered.
1 year ago


Technically, opening a trading account and trading in stocks and shares is open to all eligible persons. Any person who is competent to enter into a contract can buy and sell shares in the market. You need to open a trading account with a broker and you can buy and sell shares in the stock market after the trading account is opened? Of course, you need to do your basic KYC (Know Your Client) before you can actually start trading in the markets.

Once you are ready to trade, there is no bar on whether you must trade or invest. Normally, trading is for the short term while investing is for the long term. The fundamental difference is that trading refers to short term buying and selling of shares whereas investment refers to long term buying of shares. A trade can be as short as intraday or can go up to a few days or weeks. A trader normally tries to churn the money rapidly whereas the investor tries to buy a good stock in the sharemarket and waits for the stock price to appreciate. You can use the same account for trading and investing and it is only the method of margining that differs in these two cases. Otherwise, the operation is one and the same.