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difference between Demat and Trading account | Motilal Oswal

A Demat account is used to hold your stocks, including share certificates and other documentation, in electronic format, whilst a Trading account is used to buy and sell these assets on the stock market. This is the main difference between Demat account and Trading account.<br>Trading accounts and Demat accounts are related despite having distinct functions. To assess your actual stock market activity, your trading account, Demat account, and bank account all closely interact. A "2-in-1 account" is how the stock market refers to the combination of trading and a Demat account.<br>

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difference between Demat and Trading account | Motilal Oswal

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  1. trading account vs demat account About trading account vs demataccount Role of Trading Account and Demat Account

  2. About Demat and Trading Account • A Demat account is used to hold your stocks, including share certificates and other documentation, in electronic format, whilst a Trading account is used to buy and sell these assets on the stock market. This is the main difference between Demataccount and Trading account. • Trading accounts and Demat accounts are related despite having distinct functions. To assess your actual stock market activity, your trading account, Demat account, and bank account all closely interact. A "2-in-1 account" is how the stock market refers to the combination of trading and a Demat account.

  3. Role of trading account vs demat account • A demat account is required to keep your shares in an electronic format, and a trading account is required to transact on the stock market. Before you can begin trading after the market has opened, you must have a thorough understanding of the market. • While trading stocks, both Demat and trading accounts are necessary. You require a trading account in order to complete the transaction when buying shares of any company. The money is debited from the trading account and the purchased shares are credited to your Demat account. • Similarly to this, your Demat account is debited when shares are sold. Your trading account will show the funds credited in this transaction. Therefore, having both of these accounts and linking them is essential in order to trade on the stock market.

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