Diffrence between Trading Account And Demat Account

1.Difference Between Demat and Trading A/C:- Difference between both accounts is that a Demat a/c is used to hold your securities such as your share other documents in electronic format whereas a Trading a/c is used for buying and selling these securities in the stock market. Both accounts are taken important place according to their uses, in both a/c have a slight difference. rn2.When We Get Share on Demat A/C After Buying the Shares:- When we buy the share of any companies by the trading account the shares are automatically credited to your a/c on T+2 days. 3.When We Get Money on Demat After Selling the Shares:- If in Demat account, the 100 shares and you sold your shares then it will be debited to your account on T+1 day and the amounts are credited to your bank account on T+2 day. 4.Where We Can Open Both A/C:- Any traders or investors can open your both account by any bank or any brokerage firm according to their suitability. Charges will different for all bank and broker firm. An annual maintenance charge is levied by the Depository Participant with whom you have opened your account. 5.Can I Open an only Trading a/c:- Demat account is only required if you want to hold shares in electronic form. So, if you have opened a trading a/c and only intend to trade in futures and options, then it is not required. That is because futures and options in India are cash settled and do not result in delivery. However, if you intend to deal in equities the Demat a/c is a must. Can you avoid it if you only intend to trade equities intraday? The answer is no! The moment you intend to trade in equities, SEBI regulations insist that you open a Demat along with your Trading account. 6.Can we sell shares on before it comes into your Demat:- Can you sell it before it comes to your Demat account? The answer is yes. The broker will allow you to sell the shares before it comes into your Demat account. However, there is a risk that you may not get the delivery on T+2 day due to a short delivery.