42664827 Online Trading Sumit Final

8/2/2019 42664827 Online Trading Sumit Final

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INTRODUCTION

The trading on stock exchange in INDIA used to

take place through open protest method without

use of information technology for immediate

matching or recording of trades.

This was time consuming and inefficient. This

imposed limits on trading volumes and efficiency. In

order to provide efficiency, liquidity, andtransparency NSE and BSE introduced nation wide

online fully automated SCREEN BASED TRADING

SYSTEM


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ONLINE TRADINGDefinitions

TRADING

Buying and selling securities or commodities on a short-term basis, hoping

to make quick profits.

More generally, any buying and selling of securities, commodities, goods, or

services.

online tradingBuying and selling securities using the Internet or broker-providedproprietary software that works through the Internet. Online tradingis distinguished from Wireless Trading, a nascent area of service where

brokerage customers can trade via cell phones, pagers, and hand-heldor anizers.


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SCREEN BASED TRADING

NSEs screen based trading is known as

NEAT- National exchange for automated

trading.

BSES screen based trading is known as

BOLT- Bombay online trading.


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Ticker window


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Pre -Requisites for onlinetrading

Client must have permanent Account number (PAN).

The client has to have internet connection for onlinetrading.

Sun java should be installed in clients system.

The client must have an email id.

Client must have an email ID

Client must open a Demat account.


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ONLINE TRADING PROCESS

LOGGING ON

On starting NEAT application, the logon screenappears with the following details.

USER IDTRADING MEMBER ID PASSWORD


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MECHANISM OF ONLINE

TRADING

NSE has main computer which isconnected through VERY SMALL

APERTURE TERMINAL(VSAT) installed

at its office.

THE main computer runs on a faulttolerant STRATUS mainframe computer

at the exchange. Brokers have terminalsinstalled at their premises which areconnected through VSATS.


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HOW TO ENTER SELL ORDER

Same as the process involved in the placingof the buy order.


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To enter a Sell order


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TERMS USED

Snap quote:- feature available to getinstantaneous market information on adesired security.

Active and Passive orders:- when anyorder enters the trading system, it is anactive order. It tries to find a match on theother side of books. If it finds a matchtrade is generated, if does not finds matchit turns to passive order which is stored inorder book.


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bolt

To facilitate smooth transactions, BSE hadreplaced its open outcry system with theBSE On-line Trading (BOLT) facility in

1995. This totally automated, screen-basedtrading in securities was put into practicenation-wide within a record time of just 50days. BOLT has been certified by DNV for

conforming to BS7799 security standards,making BSE the second stock exchange inthe world to have this certification.

The capacity of the BOLT platform stands


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BSE has also introduced the world's first

centralized exchange based Internet trading

system, bsewebx.co.in. The initiative enables

investors anywhere in the world to trade on the

BSE basis which has enabled it to achieve the

BS7799 certification and the subsequent ISO

27001 certification. In addition, BSE has alsobeen successful in maintaining systems and

processes uptime of 99.99%.


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BSE operates a large private network in India.In addition to BSE service segment, thenetwork supports Depository operations

(CDSIL) and Commodities Trading (NMICE).The network uses following segments to caterto market intermediaries.

BSE's Campus LAN

BSEs Campus LAN covers around 350member offices across 3 BSE buildings: P.J.

Towers, Rotunda and Cama building


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BSE WAN

BSE WANconnects approximately 2500member offices within Mumbai and 29 majormetros to the BSE systems. Leased MLLNcircuits from MTNL / BSNL are provided with

ISDN / TTML leased circuit backup. Around550 circuits are of 2Mbps capacity and the restare of 64Kbps / 128Kbps capacity.


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VSATs:

BSE's uses VSAT technology to cater to around 2000locations spread across 400 cities. Services areprovided from BSE's satellite hub at Mumbai.

Regional Hubs:The regional Hubs in 9 cities provide low cost localleased lines backed by high availability trunkbackbone to BSE. Such regional technology hubs arecommissioned in Ahmedabad, Bangalore,

Chandigarh, Chennai, Delhi, Hyderabad, Indore,Jaipur, Kolkatta, Ludhiana, Pune and Rajkot.


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Benefits of online trading

Less costly

Peace of mind

Keeping recordsAccess to information and investmenttools

Unparalleled LiquidityUnparalleled Safety

Reduces the settlement risk

Offer greater transparency


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Problems

Server not found

Connectivity of the broker with NSE andBSE

Cyber Attack

Non-Availability of a seamless interface

Non- availability of personalizedMargin

Little use of advisory services

Increased charges


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Thank You

42664827 Online Trading Sumit Final

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