Online Trading

GAHLOT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

PROJECT REPORTON

Online TradingOnline trading India is the internet based investment activity

that involves no direct involvement of the broker.online trading platforms of the biggest stock houses like the

National stock exchange and the Bombay stock exchange.Online trading allows you to buy and sell shares on the

exchange through Internet.The online stock trading is becoming the most popular way to

trade stocks because of computers. No longer do we have to call a broker and pay high commissions to buy or sell a stock.

History The history of e trading began in 1983, when a doctor in Michigan

placed the first online trade using E*TRADE technology.

The concept was visualized by one Bill Porter, a physicist and inventor with more than a dozen patents to his credit.

In India Online trading started in February 2000 when a couple of brokers started offering an online trading platform for their customers.

E trading has become a way of investing in the developed world and is soon catching on in developing countries too.

Online trading means trading investing in equities, derivatives, commodities etc through the Internet.

Safety in trading through Internet The better this transaction system, the more difficult it is for

any person to hack the site.

you too can ensure the safety of the transactions online. You normally get a secured user id and password, the secrecy of which is to be maintained entirely by you.

If the transaction system requires no manual intervention, you further improve the safety in the transactions. This enables the elimination of the possibility of any manual intervention.

BENEFITS OF ONLINE TRADING

Fully Customizable displayDynamic Charts with IndicatorsReal-Time market dataLive order status Track orders real time Real time position updatesDynamic buying power

DIFFERENCE BETWEEN ONLINE AND OFFLINE

Online trading consumes less time as compare to manual trading.

Online trading has very helpful to finding the records easily but offline trading takes more time to finding the records.

In the help of online trading, there is no chance of any errors while doing the trading. In offline trading there are some errors exist like barriers of communication.

National stock exchange And Bombay stock exchange

In spite of many private stock houses at present involved in online trading in India, the NSE and BSE are among the largest exchanges.

They handle huge daily trading volumes, supporting large amounts of data traffic, and possessing a countrywide network.

The automated online systems used for trading NSE & BSE NIBIS (Internet Based Information System ) & BOLT BSE Online Trading system

Important terms in share market and in share tradingOpen-The first price at which the stock opens when market

opens in the morningHigh - The stock price reached at the highest level in a day.Low - The stock price reached the lowest level in a day.Close - The stock price at which it remains after the end of

market timings or the final price of the stock when the market closes for a day.

Volume - Volume is nothing but quantity.Bid - The Buying price is called as Bid price.Offer - The selling price is called offer price.Bid Quantity - The total number of shares available for

buying

Contd…Offer Quantity - The total number of shares available for selling Share Trading - Buying and selling of shares is called share trading.Transaction - One complete cycle of buying and selling of shares Squaring off - This term is used to complete one transaction. Means if

you buy then have to sell (means square off) and if you sell then you have to buy (means square off).

Limit Order - In limit order the buying or selling price has to be mentioned and when the share price comes to that price then your order will get executed with the mentioned price by you.

Market Order- When you put buy or sell price at market rate then the price get executes at the current rate of market. The market order get immediately executed at the current available price.

Different types of shares tradingDay trading Delivery Trading

Dematerialisation

The process of converting  Physical Certificates (demat shares) back into electronic holdings is called Dematerialisation

Rematerialisation

The process of converting electronic holdings (demat shares) back into Physical Certificates is called Rematerialisation.

Share trading through Depository participant (Angel Broking)

The group is promoted by Mr. Dinesh Thakkar, who started this business as a sub-broker in 1987 with a team of 3.

Today the angel group is managed by a team of 6400+ direct employees and has a nationwide network comprising of 21Regional hubs, 111 branches and 8757 sub brokers & business associates. Angel broking is 100% focused on retail stock broking business unlike any other larger national broking house. The group currently services more than 6, 70,700 + retail clients.

The Unique Features of Angel

Instant Online Fund Transfer with Multiple Banks•BSE, NSE, F & O, MCX and NCDEX operation conducted in a single screen

Products and Services details

Reports Market Outlook at 8:30 a.m.Technical Report at 4:30 p.m.Derivative Analysis Report at 8:30 a.m.

Fundamental Research ServicesThe Sunday Weekly ReportThe Industry WatchStock AnalysisFlash News

Technical Research ServiceOnline ChartIntraday CallsPosition CallsFutures Calls

Online Trading in Angel Broking

Angel Diet

Application based ideal for tradersUser friendly and simple navigation

Angel Trade

Browser based for investorsNo installation required

Introduction of Auto Mobile SectorsIndia is the second largest producer and manufacturer of two-

wheelers in the world. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50's.

Hero Honda and Bajaj Auto are two of the Indian companies that top the list of world companies manufacturing two-wheelers.

Hero HondaHero Honda Motors Ltd is the World's single largest two-

wheeler motorcycle company.Hero Honda Motors Ltd was incorporated in the year 1984.The joint venture between India's Hero Group and Honda

Motor Company, Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide.tor Company of Japan and Hero Group.

when it produced 1.3 million motorbikes in a single year. During the fiscal year 2009, the company has sold 4, 01,290 units in comparison to 3, 85,262 units last year. And the net profit of the company stood at Rs 1281.7 core up 32% from the previous fiscal year.

In march Hero Honda Motors has declared special dividend 4000%

In May months metal and financial companies' shares kept the markets in negative terrain.

metal and financial companies' shares kept the markets in negative terrain.

CONCLUSIONS

From the research carried out, it can be concluded that presently the concept of e-Broking is not prevalent in the market. Still the traditional method of offline trading is preferred by the people. As it is a new concept, it will take time for people to change their mode of trading.

The users of online trading are mostly businessman. Other persons falling in the category of employee, govt. servants or professionals are either not aware or are not mentally prepared for using e-Broking concept.