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On-line Trading Trading @ the Speed of Light
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With the advances in Information Technology, age old methods of share trading are gradually fading out. They are replaced by the easier and hassle-free method of trading on-line through the internet.

With the February 2003 announcement of Gilts trading available on-line, capital market reforms in India have outpaced all other sectors in the post-liberalization era. The options available for investments today are many. The mutual funds industry is doing well, IPO market is revived and derivatives trading is catching on in India. If these investments can be made by the click of the mouse then the investment process will be the easiest. Investors can save time and make money. On-line trading, which is the way the developed world is investing, is now the mantra of investment markets in India. To combine the speed of the Internet and the intricacy of the trade and provide an interactive and integrated trading environment for all investments is the ultimate goal.

On-line trading, started in India in February 2000 when the Kochi-based Geojit Securities conducted the first Net transaction of 100 shares of Reliance. Indian capital market reforms started in November 1994, when the NSE set in motion a chain of events that altered Indian stock markets. It flagged the operations of professionally run stock exchanges offering screen-based trading through VSAT, which was in stark contrast to the open outcry system. Following it there was the nod of Sebi to allow trading of securities on the Internet in late January, 1999 the concept was established with the NSE offering its first truly on-line Trade execution. Today, the Indian capital market infrastructure can be regarded as one of the best in the world.

On-line trading is of two categories: Discount on-line brokers and the other one is the full service on-line broker. Discount on-line brokers allow one to trade via Internet through the broker at reduced (less than off-line brokerage charges) rates.

 
 

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