What is a Trading account?
If you are looking to buy or sell equity shares in a stock market, you must have a trading account. A trading account operates like a brokerage account and holds investments including securities, cash, and other holdings, thus, allowing investors to buy and sell assets within the same trading session. Trading account holders are involved in day trading and sticking to long-term buying and selling propositions.
Many people confuse demat accounts with trading accounts, not realizing the difference between the two. A demat account is used as a bank to deposit the securities bought. When a company lists its shares or debentures in the stock market, you can trade on it through your online trading account. After registering your trading account with a firm or a stockbroker, you are assigned a unique trading ID that allows you to carry out your trading transactions.