INFORMATION TECHNOLOGY Online Share Trading 10/29/2010Information Technology.

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Presentation transcript:

INFORMATION TECHNOLOGY Online Share Trading 10/29/2010Information Technology

Group Members Name Roll No. Chandni Devani Paras Ghadvi Ashish Gaikwad Trupti Gaikwad Kewal Jagani Rohit Jain Rakesh Jamdhade Ankita Kajare Vijay Kaldate Pankaj Kamma /29/2010Information Technology

INTRODUCTION The trading on stock exchange in INDIA used to take place through open outcry 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, and transparency NSE and BSE introduced nation wide online fully automated “SCREEN BASED TRADING SYSTEM” 10/29/2010Information Technology

10/29/2010Information Technology The various transactions involved in online trading can be shown from the point of view of the Client Broker Stock Exchange

Stock Market is an organized market, where securities of govt. and semi govt. bodies and corporate enterprises or bought and sold. Stock Market deals in second hand or existing securities. Individuals alone can buy and sell securities. The Stock Market does not provide this facility to corporation and partnership firms. In the Stock Market only those securities which are listed in the Stock Market are transacted. Unlisted Securities or not permitted to be dealt in the market. The Stock Exchange regulates its day-to-day operations. FEATURES OF STOCK MARKET 10/29/2010Information Technology

Demat refers to a dematerialised account. i.e. Don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account. As you buy and sell the shares, they are adjusted in your account. comparison of the charges of Demat Account 10/29/2010Information Technology Depository Account Opening Charges Account Maintenance Charges Transaction Charges SBI Demat Account SBI Demat Account Charges NIL Rs. 400/-p.a. 0.03% of value of Transaction(Min. Rs.30/-) CITI Bank Demat Account CITI Bank Demat Account Charges NILRs. 250/-p.a. 0.06% of value of transaction Min. Rs.18/- Sharekhan Demat Account Sharekhan Demat Account Charges NILRs. 300 p.a..03% of value of transaction Min. Rs. 30/- ICICI Demat Account ICICI Demat Account Charges NILRs. 500/-p.a. 0.04% of value of transaction DEMAT ACCOUNT

SCREEN BASED TRADING  NSE’s screen based trading is known as NEAT- National exchange for automated trading.  BSE’S screen based trading is known as BOLT- Bombay online trading. 10/29/2010Information Technology

MECHANISM OF ONLINE TRADING NSE has main computer which is connected through “VERY SMALL APERTURE TERMINAL”(VSAT) installed at its office. THE main computer runs on a fault tolerant “STRATUS” mainframe computer at the exchange. Brokers have terminals installed at their premises which are connected through VSATS. 10/29/2010Information Technology

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HOW TO PLACE ORDER An investor informs broker to place an order on his behalf. The broker enters the order through his PC, which runs under windows NT and sends signal to the satellite via VSAT. The signal is directed to mainframe computer at NSE via VSAT at NSE’s office. A message relating to the order activity is broad casted to respective member. 10/29/2010Information Technology

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HOW TO ENTER SELL ORDER Same as the process involved in the placing of the buy order. 10/29/2010Information Technology

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Meaning of Speculation: Anticipation changes in prices of securities in future is known as Speculation. Different types of Speculation activities:  Bull  Bear  Stag 10/29/2010Information Technology

10/29/2010Information Technology BASIS OF OPERATION The online trading operates on the strict basis of PRICE PRIORITY TIME PRIORITY

LOGGING ON Example of TRADING AGENCIES : The logon screen appears with the following details.  USER ID  TRADING MEMBER ID  PASSWORD  NEW PASSWORD 10/29/2010Information Technology

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CONCLUSION 10/29/2010Information Technology

Thank you 10/29/2010Information Technology