Hello Friends,,
I want to put down a few points which will help you to decide whether to go for online trading account or simply stick to the ordinary account with your broker.
There are many risks of opening an online account. Few major points to consider are as follows.
1) The 1st major risks is when you short sell any company's shares. Say for instance, you have short sold 1000 shares of HDIL at Rs.80/- and intend it to cover back at Rs.75, so you place an buying back order at Rs.75/-. Suppose only 900 shares are covered back & 100 shares are still in short position & you forget/did not cover till the market ends, this mistake of yours will attract panelty as the shares go for auction in post markets settlement. The penalty will be around 25%-30% of the turnover value.
2) The 2nd risk is suppose you get a buying call of any company and if the share you intend to trade is of a catogory which does not allow intraday trade then again you will be penalised on % on turnover basis. (Ex T counter catogory)
3) At home or at office you take an connectivity where you are just concerned with market trends, but for trading efficiently you even need to know the news & prospects of the company which a broker knows better than you.
Apart form this there are many other things to be considered such as wrong order punching, Ledger details maintainence and such things wherein your broker can do it better than you. Even you are charged an extra cost for being provided connectivity at your desk.
So, if you are not expert in all this feilds, its better you dont open an online account.
Thank You.
Bijoy Momaya
www.Bijoy.TradingIdeas.in
CAclubindia
