#BSCTradingTips Stock exchanges are known as the economic barometer of the country. You can easily view the cascading impact of any global or domestic event, political news, natural calamity or pandemic on a country by monitoring its stock exchanges. India has two major stock exchanges – NSE and BSE. Read on to know more about BSE Trading through TradeSmart.

The first pre-requisite for trading on this stock exchange is having a BSE Trading Account and demat account. You can open this account through any authorized broker or brokerage agency. Documents such as identity proof, address proof and a bank account are essential for opening this account.

Types of BSE Trading

BSE Trading can be of two types – intraday or day trading and delivery trading.

In intraday trading, you need to close or square-off the transaction (long as well as short) within the same day. In this type of trading, you are allowed to use margins. Margins refer to the funding given by the broking firm to enhance your exposure. This facility permits you to buy or sell higher number of stocks, which otherwise would need you to invest more funds.

In delivery trading, you need to hold the stocks for more than a day and hence take their delivery. There is no margin concept in this type of trading.

Transactions are processed within a T+2 settlement framework or two working days.