Knowledge HubA complete guide to Mobile Trading in India

Hey, Have you seen movies like Scam 1992 or Hollywood movies like The Big Shot, Wall Street or so. If you have watched these movies, you must have come across the "open outcry" system of trading, where people meet on a trading floor and trade the stocks of various companies. This system had many disadvantages. The major disadvantage of this system is price transparency. As an investor, you actually do not know at what price your shares are bought. To avoid such a situation, exchanges started with online trading, where you could see the rates of the scripts you wanted to buy and instruct your dealer to execute the trade on your behalf.

Now, with the emergence of cheap internet data and mobile phones, such trading terminals are in your hands in the form of  mobile applications.

But let us take you to the entire journey of online trading & why you should opt for it.


Account Opening

For online trading, you must open 3 accounts, which consist of a bank account, a brokerage account, and DP account. The existing bank account may be used, or you can open a new bank account exclusively for the purpose of online trading.

You must submit a copy of PAN card and Aadhar card (along with Aadhar consent), a photograph, and a cancelled cheque to complete the account opening process. If Aadhar is not available, or you do not want to share Aadhar, alternate documents may be made available.

The entire process for account opening is completed online within a few minutes. The documents are verified using the e KYC process introduced by the exchanges and regulator SEBI.

You will be allotted a Unique Client Code (UCC) and provided copies of all account opening documents.

Order Placing

You may place orders through the broker's website, via a mobile app, by calling a dedicated call center (call and trade) or visit the broker's office. In rare cases, you can place orders through email.

All email and phone communication shall be only using the email ID and phone number provided at the time of account opening. This is referred to as ``registered email" and "registered mobile number" (RMN).

A complete order must specify the following: stock, price, quantity, and   Buy or sell.

All orders must be accompanied by appropriate margin.

Types of Orders

  • Limit Order - A limit order allows you to set a maximum and minimum price for a buy and sell order respectively. The trade will get executed only at the given price.

  • Market Order - A market order buys or sells at the current market price of the share.

  • AMO (After Market Order) - AMO’s are the trades which are placed after the market is closed. AMO can also be placed at Market Price. This type of order is useful for highly busy professionals and investors in different time zones.

  • IOC (Immediate or Cancel Order) - As the name suggests, when you place an IOC trade, if the trade isn’t executed immediately as soon as it is placed on the exchange, it gets cancelled.

  • Stop Loss Order - A stop loss is where a trader can limit his losses by exiting the trade if the share reaches the trigger price. By placing a stop loss, you can save yourself from heavy losses if the price of a share rises or falls suddenly.

  • Cover Order (CO) - Cover order is one of the types of orders where you can enter into a position along with stop loss in the same trade.

  • Bracket Order (BO) - Bracket order is a combination of 3 orders. First is a buy / sell order, followed by  a stop loss and a target order. The order plays between the SL and target (bracket) hence the term bracket order.

Order Confirmation

Once an order is traded, you will receive confirmation for the same via SMS and in the evening you shall receive a contract note for all the trades done during the day. The contract note is required to be issued within 24 hours, but is normally issued by late evening on the same day.

A contract note contains details of transactions such as Date, Time, Price, Quantity, Trade ID, various charges/ levies, etc.


Settlement of Trades

The Indian capital market follows a T+1 settlement. This means that the exchange settlement will happen on the next working day for all trades. Accordingly, you have to make the funds available to your brokers account before trade or on the same day.  Post trade you will get shares in your demat account the next day.  Similarly, if you have sold stock, you will  be required to ensure that shares are available for delivery before the pay in on T+1 and you will get the funds in your bank account at the end of day on T+1 day. A broker is required to pay out the funds to your bank account within 24 hours of pay out.


That was all about the trading process.

If you are an investor with Jhaveri Securities, we have a very robust mobile trading application called JeTrade+. This application not only helps you to trade but also provides you with actionable research calls, screeners, and an IPO application feature.

To Open an account with Jhaveri Securities, please give a missed call on 9555066040

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