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Information Technology. Online Share Trading. Name. Roll No. 11 12 13 14 15 16 17 18 19 20. Chandni Devani Paras Ghadvi Ashish Gaikwad Trupti Gaikwad Kewal Jagani Rohit Jain Rakesh Jamdhade Ankita Kajare Vijay Kaldate Pankaj Kamma. Group Members. - PowerPoint PPT Presentation
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Information Technology
INFORMATION TECHNOLOGY
Online Share Trading
10/29/2010
Information Technology
Group Members
Name Roll No.
Chandni Devani Paras Ghadvi Ashish Gaikwad Trupti Gaikwad Kewal Jagani Rohit Jain Rakesh Jamdhade Ankita Kajare Vijay KaldatePankaj Kamma
11121314151617181920
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INTRODUCTION
• The trading on stock exchange in INDIA used to take place through open outcry method without use of information technology for immediate matching or recording of trades.
• This was time consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency, liquidity, and transparency NSE and BSE introduced nation wide online fully automated “SCREEN BASED TRADING SYSTEM”
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The various transactions involved in online trading can be shown from the point of view of the• Client • Broker • Stock Exchange
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• Stock Market is an organized market, where securities of govt. and semi govt. bodies and corporate enterprises or bought and sold.
• Stock Market deals in second hand or existing securities.
• Individuals alone can buy and sell securities.
• The Stock Market does not provide this facility to corporation andpartnership firms.
• In the Stock Market only those securities which are listed in the Stock Market are transacted.
• Unlisted Securities or not permitted to be dealt in the market. • The Stock Exchange regulates its day-to-day operations.
FEATURES OF STOCK MARKET
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Demat refers to a dematerialised account. i.e.Don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account. As you buy and sell the shares, they are adjusted in your account.
comparison of the charges of Demat Account
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DepositoryAccount
Opening ChargesAccount Maintenance
ChargesTransaction
Charges
SBIDemat AccountCharges
NIL Rs. 400/-p.a.
0.03% of value of Transaction(Min. Rs.30/-)
CITI BankDemat Account
ChargesNIL Rs. 250/-p.a.
0.06% of value of transaction Min. Rs.18/-
SharekhanDemat Account
ChargesNIL Rs. 300 p.a.
.03% of value of transactionMin. Rs. 30/-
ICICIDemat AccountCharges
NIL Rs. 500/-p.a. 0.04% of value of
transaction
DEMAT ACCOUNT
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SCREEN BASED TRADING
NSE’s screen based trading is known as NEAT-
National exchange for automated trading. BSE’S screen based trading is known as BOLT-
Bombay online trading.
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MECHANISM OF ONLINE TRADING
NSE has main computer which is connected through “VERY SMALL APERTURE TERMINAL”(VSAT) installed at its office.
THE main computer runs on a fault tolerant “STRATUS” mainframe computer at the exchange. Brokers have terminals installed at their premises which are connected through VSATS.
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HOW TO PLACE ORDER
An investor informs broker to place an order on his behalf. The broker enters the order through his PC, which runs under windows NT and sends signal to the satellite via VSAT. The signal is directed to mainframe computer at NSE via VSAT at NSE’s office. A message relating to the order activity is broad casted to respective member.
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HOW TO ENTER SELL ORDER
Same as the process involved in the placing of the buy order.
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Meaning of Speculation:
Anticipation changes in prices of securities in future is known as Speculation.
Different types of Speculation activities: Bull Bear Stag
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BASIS OF OPERATION
The online trading operates on the strict basis of PRICE PRIORITY TIME PRIORITY
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LOGGING ON
Example of TRADING AGENCIES :
The logon screen appears with the following details. USER ID TRADING MEMBER IDPASSWORD NEW PASSWORD
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CONCLUSION
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Thank you
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