Broker, it is not only a term. It is a profession and service that cater a lot of clients who hold an offline account in the stock market. Usually, the service of a stockbrokeris believed as only cater offline trading to the client where the client can call the bolt operator and ask about the market. He can instruct to buy or sell shares of some companies of his choice. Here the operator checks if the client has sufficient balance in his account that can carry out the trade or not. If the balance is there, he can place the order as per the instruction of the client or ask him to balance the account first.
This is a common picture one can see in every trading house. However, the full-service brokers are not restricted to offer the services of the trading only. They offer complete financial solutions which include research and analysis of various companies, recommendations of carrying out trades in specific shares, investment in the mutual fund and other options as well as participate in the primary market. Hence one can also apply for the IPOs of the new companies with the help of these share brokers.
Get the account:
Getting the account opened is no rocket science. One can go to any of the brokers or a broking house in the market and get the same opened after completing some formalities. To get the best of the class services, one can check the services offered by the top 10 stock broker in the market. The Demat and Trading account are required for investment as well as trading in the market. As far as the Demat account is concerned one needs to apply to the CDSL or NSDL only as only these two institutes have authority for the same.
The market has different sections in each of which one can trade and earn good profit. However, for trading in any section, the trader needs to have sound command and thorough research on the segment. In the cash segment, one can deal in intraday or delivery trades while in the derivatives one can go for future or options. In the cash segment, one can deal for a single unit of share also which is not the case with the derivatives as there are contracts which one needs to buy. Here the contracts are available fora fixed period which one needs to keep in mind as before the expiry of the contract the position has to be squared off. Else the system squares off the position automatically which may result in loss also.
As the expiry period for the contracts may be long, it may give ample opportunity to the trader to book the profit or cover the loss. On the other side, there are also chances of increasing loss over a period if one does not have a right strategy of trading in this segment. Hence only those traders who have command on this segment needs to trade in it.