*ADVANTAGES AND DISADVANTAGES OF ONLINE-TRADING
*PROCESS OF ONLINE-TRADING
a. LIMIT ORDER/ LIMIT PRICE ORDER
b. MARKET PRICE ORDER
c. STOP LOSS ORDER
*STATUS OF ONLINE-TRADING IN INDIAN EQUITY MARKET
*WHY ONLINE TRADING ENTERED LATE IN INDIA?
*PLAYERS IN ONLINE-TRADING
*Online trading in securities refers to the facility of investor
being able to place his own orders using the internet trading
platform offered by the trading member viz., the broker.
* The orders so placed by the investor using internet would
be routed through the trading member.
*It is continuously growing and has a huge market potential.
*Online trading started in India in February 2000 when a
couple of brokers started offering an online trading platform
for their customers.
Paperless transactions – your share
certificates get deposited in electronic
form (DMAT) in your web trade account
Orders can be also placed offline during
Record of all transactions are available
at your fingertips
The mechanism or system fails due to
the less speed of internet connection,
the investor can suffer a big failure
As some online brokers charge apathy
fees from traders. If you trust them
without enquiring about them, it will
prove to be a big loss for you
The do it yourself attitude that
empowers the investor over his own
Broker’s settlement through Exchange
Shares are transferred
Limit Order / Limit
• An order to buy or
sell stock at a
• The order can be
executed only at
the specified price
• A limit order sets
price the client is
willing to pay as a
buyer, and the
they are willing to
accept as a seller.
• Instructions to
the broker to
to the best
available bid or
to buy from the
• The risk
which the trade
is liquidated to
halt any further
decline in value.
*The Bombay On-line Trading System (BOLT) is on-line
Trading System for trading in Stocks.
* The System is operational at Bombay Stock Exchange - the
premier Stock Exchange in the South East Asian region
since March 1995.
*It is one of the few Stock Trading systems around the
globe, which handles hybrid/mixed mode of trading i.e.
Order driven as well as quote driven.
*Main objectives of BOLT are increases trading capacity of
the stock exchange, improve market transparency,
eliminate unmatched trades and delayed reporting,
promote fairness and speedy matching.
*The Indian exchanges and brokering houses have been very
slow in moving their online transactions
*The major reason has been the lot government regulations
*Connectivity related issue was perhaps the most important
*Many other issues like security, backup and recovery
procedural costs also acted as deterrents in the process.
*From this presentation, I conclude that the
online trading is well improved and efficient.
*There are new technologies are emerging in
market and investors are also responding them.
*There were so many scams done in market but
by the way of online trading stock exchanges
and SEBI prevent them.