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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