Glossary

Trading account: meaning, example and why it matters

The account you use to place buy and sell orders on an exchange through a broker. It works together with your demat account, which holds the shares.

Worked example

You place an order for 20 shares at ₹300 through the trading account. About ₹6,000 plus charges leaves your linked bank account on settlement and the 20 shares arrive in your demat account.

Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.

Why it matters

It is the account through which orders reach the exchange, and it is linked to both your bank and demat accounts.

Related terms

Demat accountBroker

See it in practice

Compare brokers

Frequently asked questions

Can I use a trading account without a demat account?

To hold shares you need both. The trading account places the orders and the demat account holds what you purchase.

Is this page investment advice?

No. Trading account is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.

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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.