Question 1

On which exchanges will I be able to buy and sell shares?

Accepted Answer

AxisDirect allows you to buy and sell shares on NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).

Question 2

What is a Market order?

Accepted Answer

A market order is intended to execute immediately at the current market price. You need not specify a price while placing a market order. Market orders are used when certainty of execution is a priority over price of execution.

Question 3

What is a Limit order?

Accepted Answer

A limit order is an order to buy a security at not more, or sell at not less, than a specific price. This gives client the control over the price at which the trade is executed; however, the order may not be executed if there is no matching order found at the exchange throughout the day.

Limit orders can be used when the you wish to control the execution price rather than certainty of execution of the order. A buy limit order can only be executed at the limit price or lower.

Example, if you want to buy shares of Axis Bank, but do not want to pay more than Rs. 1100 for it, you can place a limit order to buy the share with a limit price of Rs.1100.

By entering a limit order, you will not buy the stock at a higher price. Similarly a sell limit order can be executed only at the limit price or any price higher.

Question 4

What is Ask / offer price?

Accepted Answer

This is the rate/ price at which there is seller ready to sell his stock.

The ‘Ask’ (or offer) price is what you need to know when you are buying a stock.

Question 5

How do I make money by investing/trading in shares?

Accepted Answer

You can book profits by buying & selling, keep the shares in the demat account to enjoy long term capital appreciation and the corporate benefits like dividends and bonus declared by the companies whose shares are held with you .

Question 6

What are the market timings for trading?

Accepted Answer

Market timings from Monday to Friday 9:15 am to 3:30 pm except exchange holidays.

Question 7

What is a Bid?

Accepted Answer

The ‘Bid’ is the buyer’s price. A Bid is the rate/price at which there is a ready buyer for the stock. It is this price that you need to know when you have to sell a stock.

Question 8

Does one need to keep any minimum balance of securities in his account with his DP?

Accepted Answer

No. The depository has not prescribed any minimum balance. You can have zero balance in your account.

Question 9

Who is a Depository Participant (DP)?

Accepted Answer

The Depository provides its services to investors through its agents called depository participants (DPs).

These agents are appointed by the depository with the approval of SEBI.

According to SEBI regulations, among others, three categories of entities, i.e. Banks, Financial Institutions and SEBI registered trading members can become DPs.

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