How does Online Trading Work?
5paisa Research Team
Last Updated: 09 Aug, 2024 07:44 PM IST

Content
- Introduction
- What is Online Trading?
- How Can You Do Online Trading?
- What is Cash and Margin Account?
- The EndNote
Introduction
Long back in 1929, ace investor Joseph Kennedy sold all his stock holdings just one day before the devastating 'Black Thursday,' which marked the beginning of the Great Stock Market Crash of 1929. Many investors lost their capital assets in the event.
But why did Kennedy sell all of his holdings suddenly? It was apparently because he received a stock recommendation from a shoeshine man. In those days, stock trading was reserved for the whos who of the society. But, Kennedy thought that if a shoeshine boy (a retail investor) could give stock recommendations, there must be something seriously wrong with stock valuations.
Fast forward to 2022, and retail investors far outnumber institutional investors. They influence stock prices, trading volumes, and the overall market depth. A large credit for this goes to online trading. Online stock trading has opened a world of unparalleled convenience and excellent profit-making opportunities. This article explains how online trading works and ways to trade efficiently.
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