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  Following the central depository CDSL's statistics shows it manages 3,96,51,251 demat accounts holding 495,622 million financial securities. And another central depository, the NSDL, is taking care of 2,21,56,294 demat accounts with 36,123 Depository Participants. NSDL's demat account holdings stood at 25,37,200 million. Such popularity is due to numerous benefits offered by a demat account and an easy online process to open a demat account .  Demat account is an online repository that mitigated the risk of any loss or damage to the securities and time saver as eliminated the need of visiting the stock exchange to buy/sell securities. It is a cost-effective way of trading with reduced handling charges and duties levied for offline trading. It facilitates quick stock price discovery that enables you to pick stocks from a broader list. The depository participant requires minimal documents to open your demat account online. And the list of its facilities goes on. SEBI has set r...

Before electronic trading, stock transactions used to happen in the financial market by using physical certificates of shares. This traditional method was full of flaws. There was a high occurrence of issues related to theft, forgery, and misuse of physical copies. The advent of electronic clearing systems and intermediaries like clearing systems enabled a new era of online trading. Post-liberalization, after multinational companies, started entering the financial space. The new system of "dematerialized shares" was introduced. The entry of private players in financial services and advent of new technology in trading helped introduce the concept of "dematerialized shares”. The traditionally used physical shares were transferred into electronic format and then stored in a digital account. This process of transformation is called "dematerialization". The digital account being used for storage is called a “demat account”. Moreover, opening the demat account is al...

  With the introduction of the Depository Act, 1996, the Securities and Exchange Board of India has made it mandatory to execute trading in the stock market through digital mode only. The Depository Act has introduced a dematerialized system for trading in stocks, bonds, government securities, and other types of securities. Prior to dematerialized trading, stock exchanges offered investment opportunities with physical and paper from securities.  Technological advancement has made it easy for investors to participate in the stock market without any hassle. Multiple parties play an important role in trade statements that usually operate on the ‘T+2’ days system. These participants include issuing companies, stock exchanges, brokers/depository participants,  depositories, and investors.  Under the digital investment system, you need a platform that will hold your financial securities along with digital trading. The Dematerialization Act has provided the concept of Demat...

  The most important step of intraday trading is identifying the right stocks. A day trader requires stocks that have adequate movement on the exchange and at the same time are easy to predict their direction to move. The success rate of intraday traders is only 20%. Most traders fail to find the right stock as they pick stocks randomly and don’t prepare before the market opens. For stock selection main rules are: Trade liquid stock in terms of high volume and high open interest Refer to the momentum of stock; strength & continuity of the move based on the previous day candle Avoid ranging market Filter stocks based on percentage, rupee value movements Prefer stocks grouped by market trends and indicators Categories stocks as strong or weak according to the correlation with market To succeed as an intraday trader, you can analyze shortlisted stocks further to identify trends to make entry and exit strategies after identifying the right stocks. See also: Demat account Let us di...