Trading in share market can be taken as a business if one knows the field in-depth. It does not matter in which segment one deals if he is not able to make desired profit. The market offers various segments and in each of them there are some benefits as well as limitations that one needs to consider before going for trading in particular segment. Another important fact is the rate of brokerage as each segment has different rate of brokerage. For a trader who aims to deal in a segment with large volume it is necessary to find the service provider with lowest brokerage trading account, so that he can make desired profit easily.
The types of trades:
In the world of trading also there are two types of traders found. The first type of traders is those who are casual traders while the second type is those who are professional and take it as a business. The traders who aim to have bulk trading need to be more careful as they need to act promptly and have a watch on market all time. One who does not know much about the market but, wants to trade like a pro, need to learn many things here. From calculation of brokerage to opening of credit and handling of software everything must be learnt before jumping to trades in bulk. One can go for the cash segment or derivative after proper analysis of both segments and their sub-segments.
In the cash segment there are two alternatives which are known as intraday and delivery based trading while in derivatives one can go for futures and options. In each of the segments the type of trade and validity varies which must be taken into account before going for any of these options. The risk and investment are other important points that must be checked before going for any of these trading options.
The brokerage rate and some important points:
For a trader brokerage is much important if he wants to have volume based trading. For a casual trader it is not much important but for the bulk trader it matters a lot as he has to pay a hefty amount in the form of brokerage to the broker. In the market one can find full service broker as well as discount broker. The full service broker is right choice for those who want to have one or two trades in a day or want to create a sound portfolio.
For the bulk trader the discount broker can be the best choice as he offers the services of trading at a low rate. However, he needs to have trading in a large volume only and hence before offering the services he asks for past statement or a high amount as margin money so that he can ensure that the trader is a bulk trader only. For a trader who deals in bulk effective services for trading with good credit line holds a huge significance and hence a discount broker can be a good option.
