For the people who are keen to have some side income the share market is a right option only if they have sufficient knowledge about the market and how to trade in it. Here one can find various options as far as trading is concerned. One can choose an option as per his preference and a little research. The trader needs to check the factors such as investment, risk, return and probability to have better return as well as rate of brokerage before going for any of the segments available in the market.
How to choose the option?
The trader who wants to go for trading in this market needs to check the investment amount first. He needs to check the same with various brokers as with the help of this money only one can have limit opened on the basis of which trading is made possible. If one does not have good amount to invest in the market he needs to check the lowest margin for intraday trading with the broker. The intraday is the segment where one does not need to pay a huge amount and still can earn good profit at the end of the day.
The intraday trading:
For the traders who want to get results of their trades in a short span the intraday trading can be considered as the best option. In this option, one can buy or sell shares at some point of time and once the profit is available one can go for the reverse trade. The difference of amount of buying and selling can be termed as profit but there are certain expenses that need to be deducted from the said profit. The deductions from the same mainly consist of brokerage and other taxes. The trader can find the net profit only after deducting all the required expenses.
One can also go for delivery based trading if he aims to have long term profit. In this segment one has to pay the full amount to the broker as per the bill. He can sell the shares whenever he wants after getting the delivery of the same. The shares that are purchased under this segment kept in trading account for a few days and then moved to the demat account of the client. If the client wants to trade in the trading account without margin also he can do so on the basis of the value of the shares he holds in his demat account.
In intraday trading the brokerage amount is low and same is the investment amount. The trader can know profit or loss instantly after trades and hence it is preferred by most of the traders in the market who want to fetch profit in a short term. However, it is also considered as risky segment as a wrong trade can lead to severe damage to the trader and he may have to bear loss also. Hence while dealing in this segment one has to be highly careful.