-
-
-
Services
-
-
-
More
-
POSTED BY ON March 14, 2012 12:21 pm COMMENTS (3)
I am going to open a demat and trading account in SBI. I want to know that what is the minimum amount we can use to buy a share, for example can we buy share for 1000 rs. Also can we sell it on the next day if price is high or there is any lock in period. Can anyone tell what is the fees to open demat and trading account in SBI?
2021 © Jagoinvestor.com All Right Reserved
> Also can we sell it on the next day if price is high or there is any lock in period.
No you cannot sell the shares next day if your broker does not provide BTST (buy today sell tommorrow). If your broker does not provide BTST and if you sell your shares, you will have to pay a penalty. Check this out to get a rough idea of penalty you will have to pay.
http://craytheon.com/articles/day_trading_nse_bse_short_selling_auction_process.php
If you have a normal bank account in SBI then do not open a trading account with SBI, always keep your broker and banker separate.
Dear Alok, please read my reply in addition to what dear justgrowmymoney has already told you. Are you going to put your money in shares with out understanding the risk involved? Do you know the very next day for that example – your share may become 980 or 950 or 900 Rs. share, are you ready for such moment.
My take – before opening any demat account & related things, first invest your time (not money) to read (read a lot), learn, understand all the things related with shares.
For a start, please read some old articles written by dear Manish Chauhan in http://www.jagoinvesor.com
Thanks
Ashal
To directly answer you:
SBI demat + trading charges should be about 500.
There is no lock in – you can sell the stocks the nexr day.
The important thing to note is this. The minimum brokerage is usually Rs.25 in most places. So if you buy and sell for close to Rs.1000 each side you will pay Rs.50 in borkerage which is 5% of your investment of Rs.1000. You start making profits only after a stock moves 5% and this is not a good proposition!
Mainly: For a significant part of the population investing in Mutual FUnds is a better way to create wealth than investing directly in stocks.