2. *INTRODUCTION
*ADVANTAGES AND DISADVANTAGES OF ONLINE-TRADING
*PROCESS OF ONLINE-TRADING
*ORDERS
a. LIMIT ORDER/ LIMIT PRICE ORDER
b. MARKET PRICE ORDER
c. STOP LOSS ORDER
*BSE ONLINE-TRADING(BOLT)
*STATUS OF ONLINE-TRADING IN INDIAN EQUITY MARKET
*WHY ONLINE TRADING ENTERED LATE IN INDIA?
*PLAYERS IN ONLINE-TRADING
2
3. *Online trading in securities refers to the facility of investor
being able to place his own orders using the internet trading
platform offered by the trading member viz., the broker.
* The orders so placed by the investor using internet would
be routed through the trading member.
*It is continuously growing and has a huge market potential.
*Online trading started in India in February 2000 when a
couple of brokers started offering an online trading platform
for their customers.
3www.nseindia.com
4. www.sharemarket.in 4
Advantages of
Online-Trading
Paperless transactions – your share
certificates get deposited in electronic
form (DMAT) in your web trade account
Orders can be also placed offline during
non-market hours
Record of all transactions are available
at your fingertips
Disadvantages of
Online-Trading
The mechanism or system fails due to
the less speed of internet connection,
the investor can suffer a big failure
As some online brokers charge apathy
fees from traders. If you trust them
without enquiring about them, it will
prove to be a big loss for you
The do it yourself attitude that
empowers the investor over his own
money
6. 66
Investor 1
Place an
order on
portal or
sub broker
broker
Investor 1
Place an
order on
portal or
sub broker
brokerBOLT
Trade confirmation
Broker’s settlement through Exchange
Depositories intimation
Shares are transferred
7. 7www.moneycontrol.com
Limit Order / Limit
Price Order
• An order to buy or
sell stock at a
specified price.
• The order can be
executed only at
the specified price
or better.
• A limit order sets
the maximum
price the client is
willing to pay as a
buyer, and the
minimum price
they are willing to
accept as a seller.
Market Order
• Instructions to
the broker to
immediately sell
to the best
available bid or
to buy from the
best available
offer.
Stop Loss
• The risk
management
technique in
which the trade
is liquidated to
halt any further
decline in value.
8. *The Bombay On-line Trading System (BOLT) is on-line
Trading System for trading in Stocks.
* The System is operational at Bombay Stock Exchange - the
premier Stock Exchange in the South East Asian region
since March 1995.
*It is one of the few Stock Trading systems around the
globe, which handles hybrid/mixed mode of trading i.e.
Order driven as well as quote driven.
*Main objectives of BOLT are increases trading capacity of
the stock exchange, improve market transparency,
eliminate unmatched trades and delayed reporting,
promote fairness and speedy matching.
8www.bse.com
10. Sharekhan.com 10
*The Indian exchanges and brokering houses have been very
slow in moving their online transactions
*The major reason has been the lot government regulations
*Connectivity related issue was perhaps the most important
technological factor
*Many other issues like security, backup and recovery
procedural costs also acted as deterrents in the process.
12. 12
*From this presentation, I conclude that the
online trading is well improved and efficient.
*There are new technologies are emerging in
market and investors are also responding them.
*There were so many scams done in market but
by the way of online trading stock exchanges
and SEBI prevent them.
