Trading Article: How To Trade Equity

This is the most common form of trading stocks. In equity segment you buy the stocks of the companies through your broker.

Once the request fro buying the stocks is settled and payment is made the stocks are deposited to the DP account of the investor.

Then stocks can be hold or subsequently sold by the investor. The advantage of the equity trading is that there is no time frame for selling the stocks or closing the deal. You can always hold the stocks till you want and then sell it when you think is the right time.

But the brokerage charge for equity segment is greater than the derivative segment or margin trading. If you are looking for good returns and do not want to take more risk and if you are ready to hold the stocks for longer period of time, this is the best way for you to invest in the stock market. [Via]

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