Differences between demat account and trading account – Take a look
As you notice in this infographics, trading account is the centre point used for buying and selling equities in the stock market. When an investor purchases a share by using the trading account, the money gets transferred from the linked bank account to the trading account so that the trading is done successfully. Once the trading is done, the shares get transferred to the demat account as it is a storehouse for all the investments.
When an investor sells a share, the share is taken from the demat account and sold in the exchange. Once sold, you receive the money in return, which you can transfer from the trading account to the linked bank account.
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