Aug 19

Online Trading FAQSHere are the most common Online trading FAQ’s.

•    What is the meaning of online trading?

Online trading or internet trading is nothing but the buying or the selling of various securities with the help of internet. It enables any client sitting in any part of the country to conduct and execute a trade with the assistance of the internet.

•    Since when did SEBI allow online trading?

In the year 2000 and in the month of January, SEBI gave the permission to the stock brokers letting them make use of the internet in order to conduct online trading. But this could be done only through the registered stock brokers.

•    Why is online trading preferred to offline trading?

Online trading or internet trading enables a person execute the trading without any time delays and with all the safety precautions needed to execute a seamless transaction.

•    What is the requirement for any stock broker for internet trading?

In order to be able to execute trading through the internet it is mandatory for the stock broker to be registered and have a net worth of atleast an amount of 50 lakh rupees. Other than these eligibility criteria, the broker is also required to have a proper operational system as well as risk management system.

•    What is the requirement for any investor for internet trading?

Online trading makes use of internet for the purpose of trading. Thus you can still execute trading even when you are travelling or are in any part of the country. The only requirement for an investor is an internet connection with any service provider and an access to computer or a PDA or a mobile device which enables you to make use of the internet.

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