Equity Trading
What is Equity Trading?
Understanding the differences among Equity, Stock and Share is essential in understanding Equity Trading. Though they are used interchangeably by new traders, the differences include:
- Equity is the total amount or value invested in a company or business, excluding the debts and liabilities. If you have 5% of equity in a company, then you own 5% of the company. It usually doesn’t encompass public participation. Price of an equity doesn’t fluctuate, as it doesn’t involve demand and supply.
- Stocks are equity shares that are traded in open market. Stock is the value of the company or business raised by reaching out to the public investors. Usually, it is in form of shares of the company being given to the public in return of money. Price of a stock fluctuates, as it involves demand and supply on a daily basis.
- Shares are the minimum units of stocks. While a stock is a collection of shares of one or more companies, share is a unit of ownership in one single company.
In Equity market, one can trade stocks and shares. Equity trading allows one to pick from a diversity of shares and to choose the amount one wishes to trade.
Create your
account
Verify your
account
Make your first
deposit
You’re all set.
Start trading
How to do Equity Trading?
Primarily, there are three modes of trading equities: Intraday, short-term and long-term.
- What is Intraday? Intraday trading refers to the process of buying and selling on the same day during the market hours (9.15 am to 3:10 pm).
- What is short-term in trading? Short-term denotes trading of shares by owning it for at least 3 months to 1 year.
- What s long-term is Trading? Long-term indicates trading that sustains for more than 1 year.
Traders opt for shares that have potential growth, high profit stocks and top stocks. If one buys a share for a value and if that value increases in future, one can sell it for a better price. Getting a share for a lesser price and selling it for a higher price is termed as profit in Equity trading.
In addition to that, some reputed companies share a certain amount of profits with the short and long terms stock holders in the form of Dividends.
Key Advantages of Equity Trading:
- Better returns, ahead of inflation
- Profit potential is high
- Own the right over shares or stocks
- Superior liquidity
- Option to trade in smaller amounts
- Chance to get Dividends from the companies
You can start Equity Trading, by opening your free account in just 4 minutes. You are just one step away joining the best site for Equity Trading.
FTD bonus- 5% of total deposit can be availed upon FTD
Campaign bonus- Get 10% of winnings of Demo ID upon FTD
Learn more about stocks
Our knowledge section has info to get you up to speed and keep you there.