Online Share Trading

India has revolutionized its stock markets since 1996. Ever since the investors' problems intensified due to paper shares, there was a need of a system that would not involve any tedious paper work or long hours of archiving and maintaining the shares. The immense security problems also caused enough headaches to the investors.
Thus, in 1996, India passed the derivatives act that allowed investors to begin trading online.
To trade shares online, the investor must open an account with a broking agent. This account will be used for online share trading and transactions in buying/selling of shares.
The investor will also be provided with a special user id and password, which he has to use to register himself on the terminal for him to buy/sell shares.
The investor can resume his trading activities anywhere he wants to at his own comfort level. Trading shares online has become a much easier affair then what it was before. The comfort zone of the investor matters a lot and its upto him on how he wants to trade his shares online.
Most of the shares today are in electronic form i.e. the demat form. The demat version helps the investor in buying/selling shares quickly and efficiently. It also makes transferring of shares much easier.
Online trading is mostly done in BSE and NSE.
As of December 2011, 5,000 companies are listed in the Bombay Stock Exchange. While the National stock exchange had at least 1650 listings till that period.
The capitalization of these exchanges are 1.6 trillion US$ and 985 billion US$ respectively.
The new trading system consisted of an automated, screen based trading platform called BSE On-line trading (BOLT). It currently has a capacity of 8 million orders per day. It also introduced the world's first ever centralized exchange based internet trading system known as BSEWEBx.co.in. This enabled investors from anywhere in the world to trade on the BSE platform.
It is often recommended to invest in smaller portions from the deposited amount in online trading. This provides the investor with enough liquidity.
As an investor, he must read the tips, rules and regulations on online trading very carefully.
Investing in the Indian stock market can be very fruitful and beneficial if online stocks are purchased after consultation with the Research analysts and account manager.
Many a times, the investor on recommendation of his friends buys up many Indian stocks during an online trading session, especially when the market is on a huge curve.