Demat-account

Various ways can help you in increasing your money. The inception of cryptocurrency opened new doors for people to look at online activities in a different light. Out of all such ways, the security market is all the one. It can help you get good returns on your invested money. However, with time, the ease of trading in the security market has also been increased. Earlier, everything was done through manual processes and agents. It involved a lot of time and costs to trade in it. But now there is no such issue. Because now Demat account is used in trading in securities.

  • In Demat accounts, you are not required to fulfill the formalities that were required to be fulfilled earlier. In the traditional way of offline trading, the ownership of the securities was transferred through title documents. Transferring ownership was at least 48 hours process. But now it has become just a matter of a few clicks. When there were no Demat accounts for trading, brokers’ assistance was an essential factor and the cost of brokers had also to be paid. With the help of this account, if you want to buy security, you are only required to click on the buy option and fill in the details like the units of the securities that you want to buy and the price at which you want to buy them. You will also be having the option to buy them either at the current market price or to set a target price and when the target price will prevail, the buy order will be executed. The same will be applicable when you will be selling the securities. You can either choose to sell at the current market price or set a target price to sell.
  • As already stated above, earlier, the securities were traded through documents. And documents there is always a risk involved and that risk is the possibility of losing the documents. If you have invested in stocks but do not have documents in possession then you won’t be able to claim the ownership. Therefore, it was risky to trade in securities through documents. But in the case of the Demat account, no such risk is involved. Because there is no involvement of ownership documents, as far as, the securities are reflected in your Demat account, you are the owner. 
  • There is another unique feature of having a Demat account. Earlier, the separate accounts of the securities has to be maintained manually and separately. It had to be managed manually the price at which you bought the security and the price at which you are selling the security. But with the introduction of the Demat account, this problem has been solved. There is no requirement of maintaining these detail separately. Because you will automatically be updated with every information the price at which you bought or sold the security or the date on which you bought or sold the security. 

These are a few unique features of having a Demat account that was not available in traditional trading. However, to know more about the Demat account, you can visit the 5paisa website

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