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What is a trading account? What are its benefit?

A trading account is similar to a bank account, but used for diverse purposes. It is owned by an investor that can hold stock, money, investments and even foreign money.

This is managed by an investment dealer at a financial institution. The investment dealer advises the investor to adopt a trading strategy where he holds his assets or an investment strategy with which he can invest in shares in the Bombay Stock Exchange or other stock markets.

The advantage of owning a trading account is very apparent. If an investor wants to invest in a company listed in the stock exchange , he must own a trading account as it registers the investor with the stock exchange. The stock broker acts as a mediator between the shares for sale and the investor. He has the license to buy shares from the stock market on behalf of investors.

What is the role of Intra Day brokers?

Some stock brokers are intra-day brokers. Intraday traders will buy a stock and re sell it before 24 hours when the stock goes up to make a profit or when the stock continuously drops to lose less money, depending on the moment they think is right. With the flexible nature of the trading account, intraday trading can take place in the market today.Stock trading has widened the range of investing globally. Stocks and bonds can be traded since online share trading was introduced in the 90’s. The most important advantage of owning a trading account is that is gives power to you to partake in online share trading.

Probability position of the Investor:

A trading account reflects on the profitability position of the investor. It projects the gross profit and gross sales which serve as guidelines for investors in the next financial year as it brings to light the competence in trading stock carried out by the investor, the stock broker, and the investment dealer.

It does this by providing the essential statistics to formulate a ratio between the cost of goods sold and the gross profit and enables the investor to distinguish the cost incurred of the stock sold as opposed to the profit generated. Trading Accounts are a great asset to investors as it provides a lot of knowledge for them to invest better in the future.

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