Gone are the days when you needed to go out of the house to trade in shares and commodities. You do not even need to visit a broker’s office to trade and conduct business. This is possible because of the possibility of online future trading. This type of trading is provided by registered companies and brokers, who via the internet conduct trades for the individuals. There are some leading online brokerage firms that have completely changed the trading scenario in India.
The online future trading firm basically hosts a website or portal that permits online trading. To be able to start business, via the internet one is required to register online with the firm. After completing the form-filling formalities the individual is required to pay a certain minimum deposit on which the trading margin is provided. Apart from all this the online future trading company also conducts verification checks on the registering individual.
If the individual’s application has been approved then the company sends across an executive who trains the individual in trading online. He also installs the software that is required to gain connectivity with the actual trading company. The individual can request the online trading company to give him up-to-date research reports, as well as tips on trading.
As per the dates and terms and conditions specified the online future trading company sends the contracts via snail mail or courier’s it to the trading client. The client is required to execute the payment immediately. Most online future trading companies tie-up with a private bank that conducts net-banking, so that the client gives instructions to the bank to transfer funds, as and when required.
To safeguard the client’s interests the online future trading company and the client generally enter a memorandum of understanding that clearly states an upper ceiling on the amount of trading the client can do, and also provides with stop loss options.
Basically, online future trading is making it easier for many to take this up as a parallel earning opportunity without having to leave their main income earning jobs.