What is Trading Account?

 

What is a trading account?

 

A trading account is a unique account that allows you to conduct trading transactions in the stock market. It acts as a link between your demat account and your bank account. However, the Demat account is the one that holds your securities. So, whenever you want to buy or sell shares in the stock market, the transaction will take place through your trading account.

 

For instance, if you are to buy a share, the money from your bank account will be transferred to your trading account so that you purchase. Once done, the share will be credited to your Demat account. But, if you are to sell a share, the share will be debited from your Demat account and the money will be credited in your bank account.

 

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