A trading account is a medium between investor and companiees and it is used to buy or sell equity shares in a stock market. Previously, the stock exchange functioned as an auction. In this, the traders used hand signals and verbal communication to convey their buying/selling decisions.
Soon after the stock markets adopted the electronic system, trading accounts replaced the open outcry system. In the online method, the buyers and sellers don’t have to be physically present at the stock exchange to place orders. Instead they open a trading account with a registered stock market broker; who conducts trading on their behalf. Each trading account has a unique trading ID which is utilised to perform online transactions.
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