Last updated on 23rd May 2019
by Team Top Share Brokers
What is Equity Trading?
Buying and selling of company shares are called equity trading. NSE and BSE are major stock exchanges of India, allowing equity trading for listed companies. Share can be trade via registered brokers with the exchange.
Purchase of share for holding overnight is call equity delivery, in such case shares get credited to your DP accounts. You have to pay full value of the shares. CNC is the order type of delivery order which means Cash and Carry. You can place BTST (Buy Today Sell Tomorrow) orders, they also come under equiy delivery.
Buy and sell stocks/indexes on the same day. This can use the margin benefit to do Intraday trade. You can place orders under NRML or MIS order type. The Intraday position needs to be squared off by 3:15 PM, if not close by client, RMS team will close this order. You can convert the Intraday position into Delivery position by paying the full amount of order value.
Trading of Shares/Indexs in Futures is called Equity Future. A futures contract is a type of financial contract where two parties agree to transact a set of financial instruments for future delivery at a particular price. On the NSE, where most Futures volume is traded, a trader can trade Index Futures, Stock Futures, and Currency Futures.
An equity options is a contract which conveys to its holder the right, but not the obligation, to buy or sell shares of the underlying security at a specified price on or before a given date. This right is granted by the seller of the option.
There are two types of options, calls and puts. A call option gives its holder the right to buy an underlying security, whereas a put option conveys the right to sell an underlying security.
For Equity delivery you need complete trade value in your account, for Intraday and derivatives trading you need to maintain Margin in your trading account. Intraday trading is more popular amoung the traders as you can trade in volume with cove order and bracket order where you get higher leverage.
To trade shares you need to choose your brokers, below is a list of "best brokers for equity trading in India" or "Top 5 stock brokers for equity trading in India".
Zerodha offers a FREE brokerage - Number one broker in India
If you are a buy-and-hold investor or passive investor or long term investor, then Zerodha is the best broker for you as you can do free delivery trading. For penny stocks investment also, Zerodha fits for you as Rs 20 or .03%(Whichever is lower) can bring down your cost on buying and selling side.
Upstox (RKSV) is also following the same path in a competitive market and now move to a FREE Brokerage service in Equity Delivery segment.
For buy-and-hold investor or passive investor or long term investor, Upstox is also a good choice as you can do free delivery trading. If you are doing penny stocks trading, Zerodha can be a better choice as Upstox compare to .03% to .05% or Rs 20 (whichever is lower).
Finvasia is the first discount broker in India who is offering Free trade in all segments.
Finvasia is really making the best offer for all type of investor, Free Trade in Devilery, Intraday and F&O is really a great deal. Margin is bit low compared to other competitors in the same segment, but you can't get everything at one place.
5paisa - Second largest discount broker in India, offers Flat Rs 10 Trading service with high leverage and best in class trading platform.
5paisa offers Direct Mutual Fund @10 Rs per transaction, Insurance service.
Fyers is also offering Free delivery trading and providing a high leverage, trying to attract active customers.
Best competitive brokerage, high leverage, and smart trading platform, Fyers is a good choice for retail and active investors.