Stock market apps have become a popular way for people to invest in the stock market, track their portfolios, and make trades from the comfort of their homes. But how do these apps work?
Mind Spark Technologies brings you this blog to give you all the details about how Indian stock market applications work. In this blog, we will break down the essential features of stock market applications and answer some frequently asked questions to help you better understand their functioning.
What is a Stock Market Application?
A stock market application is, therefore, a software utility that supports users in buying, selling, or tracking stocks, bonds, etc. Such applications can be affiliated with a stock exchange and connect users to trade shares in the real-time platform.
The popular Indian stock exchanges include the Bombay Stock Exchange and the National Stock Exchange. Many apps offer features such as market updates, portfolio tracking, tips on investment, and more research tools to help the investors make the right decisions.
How do stock market applications work?
A stock market app connects you to a broker, which essentially acts as a middleman between you and the stock exchange. The app is basically the mode of displaying live market data, executing orders, and administering investments. Here is the general step-by-step working process of a stock market app:
1. Opening a trading account: To get access to a stock market app, one has to open a trading account with a registered stockbroker. For that, personal details have to be furnished, and KYC formalities have to be completed.
2. Bank Account Link: When opening the trading account, you link your checking account to make available the money for buying stocks and the profit resulting from sales.
3. Market Scouting: The application will let you have access to real-time information about the stock prices of the stocks, news in the market, and other relative data. You can look at several stocks, analyse their performance, and eventually invest in them.
4. Order Input: One can trade stocks directly from the application by either buying or selling on the market order, specifying an intention to buy or sell at a certain price with a limit order.
5. Tracking Investments: The apps regarding the stock market will track all of your portfolio, let you know how your investments are doing and also give you price changes, news, and updates. Frequently Asked Questions (FAQs)
1. Is it safe to invest in Indian stock market apps?
Yes, in general, stock market apps are safe because they are regulated by the Securities and Exchange Board of India, SEBI, but of course, one always needs to select an app that comes with a good broker with appropriate security measures in place, for instance, two-factor authentications.
2. Do I need any prior knowledge of the stock market to use the app?
It does not require prior knowledge. Learning resources, research assistance, and professional consultancy are available in most applications to help new users understand how the market works and use that knowledge for prudent investments.
3. What is the price for acquiring an investment through an application of the stock market?
You can start with as low as ₹100 or ₹500, depending upon the app, and the stock you want to invest in. However, it is always advisable that you start with a small amount and gradually increase your investment because you gain experience.