How to buy shares of a company
1. To buy shares of a company online, you will need some important things like you should have a demat account from which you can buy shares. For this you need the best demat accounts in India – like Groww, Anjalone, Upstax, and Zerodha / How to buy shares in Zerodha
2. zerodha kit app
Since we want to buy shares using the Zerodha app, we will first need the Kit app.
A special thing about this app is that it works easily on both phones and laptops, with the help of which it will help us in buying shares.
3. Necessary funds
Along with that we will need some money with which we can buy the shares of the company.
How to login to Zerodha ?
First of all, you have to login to “Kite by Zerodha” app –
To login you have to enter your user ID, password, and 6 digit PIN.
[Note: You get all this information at the time of opening a demat account.]
How to understand trading apps?
Before buying shares, you need 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.
For this you have to click on watchlist –
Now enter the share name or symbol in the search box at the top.
(For example, we have taken “Reliance” here.)
After that click on + (Add) button –
As soon as you do this, that share will be included in your watchlist.
As soon as you click on that share after adding it to the watchlist, you will get all its information in “Market Depth”. As –
BID & ASK
Change In Price
High & Low Level
Orders & Trade Book
Order Book is the page which gives complete details of all your orders which you have sent to the Stock Exchange.
Whereas when you come to the bottom of Orders, you get the option of View Historical Trades, the first click on it takes you to the Tradebook, here you get the complete history of how much you have traded till now.
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When you buy shares, you get their actual delivery after 2 to 3 days. The stock then appears in your portfolio holdings, with profits and losses calculated based on your investment and current value.
At Zerodha, you get 5 to 16 times margin on intraday trading, which allows you to trade on overvalued stocks even at low margins.
For example, if you want to buy 10 shares of Reliance, whose price is Rs 2000, in intraday, the total price will be = Rs. 20,000 (2000*10)
But you can trade shares worth Rs 20 thousand only on margin of Rs 2000, because in Zerodha you get 10 times leverage on Reliance.
This leverage varies from share to share. You can check Zerodha Margin Calculator for more details.”
How to add funds in demat
Now, after understanding the entire trading account process, we will see how to buy shares.
For this, first of all you have to deposit funds in your demat account, and the method of this process is as follows:
Click on your user ID or account in the Kite application –
Now, go to Funds (₹) option.
Here, you can deposit and withdraw money in your demat.
Click on +Funds to deposit money –
Then, enter the amount you want to add in the amount box and select the payment method –
(Note: It would be best if you pay through Google Pay or UPI.)
Once the payment is made, the amount will be added to your account.
Read also : 8 Best Apps to Invest in Mutual Funds, in India
How to purchase shares online
To buy shares online in Zerodha Kite –
First, go to watchlist and add any stock you want to buy –
(To understand, we are giving the example of Reliance here.)
Click on the share and you will see “Buy” or “Sell” buttons –
Now, click on “Buy”, after which you will have an interface like this –
Then, enter what quantity you want to buy, at what price –
To receive delivery choose CNC and if you want to do intraday, choose MIS –
Finally, swipe down and click “Swipe to Buy” to buy shares.
On completing this action, you will purchase the shares and these shares will be delivered to your demat account within 2 to 3 days.
Before buying shares, understand these important points –
Cash and Carry: If you want to get physical delivery of shares, you should choose CNC.
Margin Intraday Square: If you want to trade intraday, you should choose MIS.
Select “Market” to buy the share at its current market price, after which you will not have to enter the price.
For example – If you buy Reliance shares on market order, as soon as you click on “Buy”, you will get the shares as per the current market price of Reliance shares.
When you want to buy shares at a specified price only, you should use “Limit”.
For example – if the price of Reliance share is Rs. 1980 per share in the market, but you want to buy it at the price of Rs. 1978, then you should enter that price. Now, as soon as a seller becomes available at the 1978 price, you get the share.
Stop loss helps determine your loss.
If you think the price may go down, you can place a stop loss at the specified price.
For example – you have bought Reliance stock at 1970 and you feel that the company is in an upward direction, due to which its price can reach 2200.
But this does not happen and the price falls to 1900, then you place a stop loss at 1950 below your 1970 (purchase price), so that if the price goes below this level, your trade is immediately executed and You can avoid big losses.
stop loss market
SL-M: There is a small difference in that when you touch your fixed stop loss, the share gets traded in the market at the price at which it was happening at that time.
Today in this post you learned how to buy shares and sell them.
You can get complete information about any stock from watchlist and market depth.
Select CNC to get MIS and actual delivery for intraday.
When buying shares, limit orders are better than market orders.
In Bid and Ask you can see the deals going on live in the market.
You can view your trades in the Trade Book, while viewing your purchased shares in the Portfolio.
By going to Funds you can easily deposit and withdraw money through UPI.
Please let us know how helpful this post was to you. Also, you can ask us your questions related to “How to buy shares” in the comment box.
How does share price change? The price of a share keeps changing depending on the demand and supply of that share in the market. What is the difference between stock and share? There is no difference between share and stock