How To Make More BSE (MUMBAI STOCK EXCHANGE) - ONLINE TRADING SYSTEM By Doing Less
Gone are the days when you need a broker to help you buy and sell stocks, shares and invest in the stock market. With online investing you can buy and sell shares with just a few clicks of the mouse. India's financial and capital markets cannot exist without stock exchanges; The two main stock exchanges where trading takes place; Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). There are more than 20 different stock exchanges across the country, where all major transactions take place.
Online business in India has changed the meaning of doing business in the country. Without the need for a broker, trading has become easier, faster and more convenient than back in the day. Some of the major financial products and services offered through online trading are mutual funds, equities, general insurance, life insurance, share trading, portfolio management, commodity trading and financial planning. In online trading, the investor has to pay less brokerage as compared to offline trading. Online investing requires no paperwork and eliminates the need for middlemen. All stock accounts are stored in demat accounts where they can be viewed.
BSE Online Trading was established in 1995 and is the first exchange established in AsiaIt has the largest number of listed companies in the world and currently has 4937 listed companies with more than 7700 products.
All that an investor needs for online trading through BSE is an online trading account. Trades can be made from anywhere in the world during business hours. In fact, BSE has replaced open cry system with automated trading. The open cry system is a common method of communication between investors on stock exchanges where they use hand signals to communicate and transmit buy and sell orders. It usually takes place in the 'pit' area of the trading floor and involves a lot of face-to-face interaction. However, trading using electronic trading systems is easier, faster and cheaper; and less risk of manipulation by market makers and broker/dealers.
BSE provides an efficient and transparent market for trading in debt instruments, equities and derivatives. This is done through a system known as BOLT - Online Trading System of BSE.
In a stock exchange, a key index is used to keep track of the most important or most traded stocks on the exchange. The index used while trading on BSE is Sensex and is displayed on all major portals, newspapers and magazines. It is India's first stock market index that enjoys prestigious status and is tracked globally. It operates in a free-float manner and is sensitive to market sentiments and realities.
There are also indices to look after medium and small companies like BSE Small Cap, BSE Mid Cap and BSE500. Moreover, India Index Services & Products Limited owns indices like CNX Nifty Jr, S&P CNX Nifty, CNX 100, S&P CNX 500 and CNX Mid Cap. BSE offers 22 indices to suit different needs including 12 regional indices. For example, the BSE PSU index tracks the performance of listed PSY companies and helps the central government monitor its assets in the stock market.
BSE has become a fully 'Corporatized and Demutualized Stock Exchange' through the use of online exchanges. It has global competitive strength with partners such as the Deutsche Börse (DB) and the Singapore Stock Exchange (SGX). BSE has strategic relationships in almost every part of the world – Europe (DB), Hong Kong (ETF) and Asia (SGX), major public sector undertakings such as State Bank of Inde, Bank of India, Life Insurance Corporation of India na Central Bank of India.
Benefits of BSE Trading System in India for Stockbrokers or Newbies
There are many attractive services to empower investors and facilitate smooth transactions. Some of these include:
1) Investor Services: Various services are provided to investors. Being the first exchange in the country to provide INR 1 million to the Investor Protection Fund, BSE conducts a nationwide investor awareness programme; 'Safe Investment in Stock Market' under which 264 programs were conducted in over 359 cities in India.
2) BSE has online trading BOLT system: Online-trading system (BOLT) facilitates on-line screen-based trading in securities. Currently it operates 25,000 trader workstations located in 359 cities across the country.
