These days the stock trading is also a business for many people. There are ample options in this market with the help of which the trading is possible and profitable. In this market, one can make a profit if he can have proper calculation and know how to trade and in which shares. For a trader, it is necessary to know the role of the broker as he can offer services with low brokerage high exposure which can help them to have profitable deals while trading. The share market is known for its uncertainties and hence those who want to earn more need to have a better deal in terms of brokerage as well as exposure.
The moment one goes for a trade he needs to calculate the brokerage first as in many cases one may not able to fetch proper profit also and yet he has to settle the account. If there is a narrow margin he may have to incur a loss because of the high brokerage. Hence low brokerage rate is preferred by every trader in this market.
The exposure is all about the margin money and credit that a trader gets against the given margin money. In some cases, the companies offer ten times credit while in some cases it also offers twenty times. For a retail trader, the exposure is not a big issue but when it comes to professional trader this element has to be focused and checked by the trader well before starting the trading. The more exposure a bulk trader can get the more profit he can generate from the market. Hence for a trader, it is imperative to have better exposure from the broker or the broking company.
In this market, the trading can be done in cash as well as derivative segments. It is a trader only who can decide which segment will be better for him as each segment has its benefits and limitations. The trading pattern, opportunities for more profit and brokerage rates as well as margin funding also vary as per the segment. The strategy of trading makes a huge difference when it comes to trade in the market. If one wants to have a narrow margin but bulk trading he can go for the intraday segment which is preferred by many traders in the market. Those who want safe trading can also go for the delivery based trading where profit margin may be less and high investment is required.
For those who believe in taking a risk and want to earn more profit, the cash segment is considered as the most viable option. In this segment also if one goes for intraday it can be a game for a few hours in which one can make good money if he follows the right strategy and knows the momentum of the market well with the trend. Those who know the sentiment well and able to analyze the current condition with updates can make good money in this segment.