In this post we will see practically how to buy and sell shares in the stock market.
But before that if you don’t know that –
So you should understand them first, because it is more important than buying and selling shares.
How to buy and sell shares?
Now let’s talk about how to buy shares? For this you should have these 3 things –
1. Demat Account
To open Demat Account, go to this link –
2. Kite App
Since we are going to use Zerodha, then for this we will need Kite App.
This app is available for both mobile and desktop, with the help of which you can do trading or investment.
3. Required Fund
Also, we will need Fund / Money, so that we can buy shares.
[Note: On completion of this requirement, you can start the process of buying shares.]
1. How to Login to Zerodha?
First of all you have to login in Kite By Zerodha App –
To login, you have to enter your User ID, Password and 6 Digit PIN.
[Note: You get all these information while opening a demat account.]
2. How to understand the trading app?
Before buying shares, you have to understand the interface of Kite App, which is as follows –
Marketwatch means that by adding the shares of your choice, you can keep an eye on their performance.
1. For this you have to click on the watchlist –
2. Now enter the name or symbol of the share in the search box at the top.
(For example we have taken Reliance here.)
3. After that click on the button of + (Add) –
4. By doing this, that share will be included in your Watchlist.
As soon as you click on that share after joining the Warchlist, you will get every information about it in Market Depth, like –
- BID & ASK
- Open Price
- Current Price
- Change In Price
- High & Low Level
- Volume etc
Orders & Trade Book
Order Book is that which gives the details of your orders which you have sent to the Stock Exchange.
While the option of View Historical Trades is available at the bottom of the Orders, clicking on it takes you to the Tradebook which shows your old trades.
When you buy shares, after 2 to 3 days you get its actual delivery. After which that share starts appearing in your Portfolio Holding. In which P&L is calculated based on your investment and current value.
In Zerodha, you get 5 to 16 times leverage on Intraday Trading, so that you can trade on high value stocks even on low margins.
For example if – you want to buy 10 shares of Reliance in intra-day whose price is running 2000 then the total value is = Rs. 20,000 (2000*10)
But you can take trade of 20 thousand shares on margin of 2000 only, because in Zerodha you get 10 times leverage on Reliance.
This leverage varies on each share. For more information you can see Zerodha Margin Calculator.
3. How to Add Funds in Demat?
Now after understanding the whole trading account process let us see how to buy shares?
For this, first of all you have to put funds in your Demat Account, the process of which is as follows –
1. Click on your User ID or Account in Kite App –
2. Now go to the option of Funds (₹).
3. Here you can add and withdraw money in your demat.
4. Click on + Add Funds to enter –
5. Then enter the amount you want to add in the amount box and select the payment method –
(Note: It would be best that you pay through Google Pay or UPI.)
6. As soon as the payment is done, the amount will be added to your fund.
4. How to buy shares online?
To Buy Online Shares in Zerodha Kite –
1. First of all go to Watchlist and add any share you want to buy.
(For better understanding we are taking the example of Reliance here.)
2. Click on the share and both Buy or Sell buttons will appear in front of you –
3. Now click on Buy, after which you will have an interface like this –
4. Then enter the quantity you want to buy at what price.
5. Select CNC to take delivery and if you want to do intraday then select MIS.
6. Finally, swipe down to Swipe to Buy to buy the share.
7. By doing this the shares will be bought and within 2 to 3 days will come in your demat account.
8. Before actually buying shares, understand some important points –
Cash and Carry: If you want to take actual delivery of shares then you should select CNC.
Margin Intraday Square: If you want to do Intraday Trading then you should select MIS.
To buy the share at its current market price, select Market, after which you will not have to enter the price.
For example – if you buy Reliance shares on Market Order, then as soon as you click on Buy, whatever the price of Reliance’s share is going on in the market – you will get the shares accordingly.
When you want to buy shares at a fixed price, then you should use Limit.
For example – If the price of Reliance is going on 1980 Per Share in the market, but you want to buy it at the price of 1978, then enter that price. Now as soon as a seller becomes available at the price of 1978, you will get the shares.
SL: Stop loss helps in fixing your loss.
If you think that the price will go down then you can put SL on a fixed price.
After which as soon as the current price of the share touches that SL, you get out of that trade, which does not cause you any more loss.
For example – You bought Reliance shares on 1970 and you think that the company is in UP trend, due to which its price will go up to 2200.
But this does not happen and the price goes to 1900, so to avoid such loss, you put SL below 1970 (Buy Price) only at 1950 so that if the price goes below that then your trade will be completed immediately and you will make a big loss. be able to escape
Stop Loss Market
SL-M: The only difference in this is that after touching the Stop Loss you put, the trade will be completed at whatever price the stock is going on in the market.
5. How to sell shares?
To sell your purchased shares, follow this process –
1. First of all go to your Portfolio.
2. Click on the share you want to sell.
3. Now click on Exit button.
4. Then enter Quantity and Price.
5. If you want to sell on Market Order, then enter only Quantity.
6. Now if you already have Actual Share then on CNC and if you want to do it for Intraday then click on MIS.
7. Finally, swipe to Sell and your shares will be sold.
To sell your purchased shares, follow this process –
- First of all go to your Portfolio.
- Click on the share you want to sell.
- Now click on Exit button.
- Then enter Quantity and Price.
- If you want to sell on Market Order, then enter only Quantity.
- Now if you already have Actual Share then on CNC and if you want to do it for Intraday then click on MIS.
- Finally, swipe to Sell and your shares will be sold.
How to Buy & Sell Shares Online: Tell us how helpful this post was for you. Along with this, you can also ask us your questions related to how to buy shares in the Comment Box.