How to Buy & Sell Stocks in India? has been originally published on: How to For India
Trading on stocks listed in Indian-based stock exchanges such as the Bombay Stock Exchange or the National Stock Exchange of India provides the active investor with an opportunity to take advantage of one of the world’s fastest and largest growing economies. With the formation of the SENSEX, a stock index comprised of thirty of the largest publicly traded companies on the BSE (Bombay Stock Exchange) and the Standard and Poor’s company CNX Nifty index, comprised of a diversified selection of 50 of the largest stocks traded on the NSE (National Stock Exchange) of India, investors can trade and monitor India’s stock market.
Here are few instructions for you:
* If you intend to trade these markets in real time then write a professional trading business plan, recognize that there is approximately a twenty four hour difference between India and US. Your trading plan should take into account how you plan to execute your trades given the time zone difference in the hours of business operation.
* Begin your research for a broker by focusing on U.S.-based international brokerages that offer their client’s access to the Indian stock markets. You can and should trade Indian stocks listed on Indian stock exchange through a U.S.-registered brokerage. Conduct a background check on the brokerages you are considering by contacting the Financial Industry Regulatory Authoritywhich is a regulatory Authority that has an online database from where you can search for free by visiting their website and also by contacting them in writing or through phone.
* Complete all of the necessary account paperwork provided by your chosen brokerage. Read the “Customer Agreement” and “Terms and Conditions” documents provided to you as they describe your rights and obligations associated with your trading account.
* Deposit your risk capital, be sure you meet your broker’s account minimum. Most brokerages allow you to deposit your funds via a wire transfer or mail in your risk deposit. For any questions regarding how to fund your account, be sure to contact your broker.
* Launch your trading according to the professional trading strategy described in your business plan. If you will be using a broker to place your orders rather than doing it yourself online you will need to establish a set of rules of how you transmit your orders. This can be done by e-mail or over the phone. Give careful consideration on managing your trades.
