BEGINNERS

MODULE-1
Basics Of Stock Market
Chapter-7
A COMPLETE GUIDE ON FRONT END OF STOCK MARKETS

What are the gateways through which investors like you can access the
markets?
Let’s say you host a local photographers’ meet. Some of them may turn up
with their phone cameras. Others may bring in low-end DSLRs. And the
professional photographers will, of course, drop in with a high-end camera
and perhaps even a couple of add-on lenses. You see, these people may have
all turned up with different gadgets, but the one thing they have in common is
that they’re all photographers.
And just like how you can use a variety of devices to take a picture, there are
different avenues that you can use to access the financial markets.
If you’re a beginner who is just getting started with trading in the stock
markets, it can help to know the various trading terminals which you can
access the markets from the front end, so you can execute your trades
seamlessly. Broadly speaking, there are three kinds of portals you can make
use of.
Mobile trading apps
All the major stockbrokers in India offer mobile trading applications that
can be installed on your smartphone. Perfect for beginners, these
smartphone apps give you real-time updates on the market trends and possess
almost all the features of a traditional trading application.
With these mobile trading apps, you can trade in the stock market from
virtually anywhere in the world and place buy and sell orders for your
favourite stocks in an instant.
Here’s a quick look at some of the features that are typically available in
such apps.

• Live market data – domestic and global

• Portfolio holdings and analysis
• Stock advisory services
• IPOs and Mutual Funds

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Web-based trading platforms
In addition to mobile trading applications, a lot of stockbrokers offer web-
based trading platforms as well. You can access these trading terminals
through a web browser from your desktop, laptop, or even your smartphone.
Ideal for beginners and for traders with a fair bit of experience, these web
platforms offer a host of benefits over and above the mobile trading
applications.
Let’s take a look at some of the additional features that these platforms
offer.

• Integrated wealth management solutions

• Access to market research reports
• Charting tools
• Technical indicators
• Ability to customise the trading platform
Desktop applications
Some stockbrokers like Angel Broking even offer dedicated desktop trading
applications that allow you to trade quickly and efficiently. Designed for
expert traders, these applications generally offer a single-window trading
platform for a swift and smoother trading experience.
Since all the essential trading features are integrated right into the
software itself, you don’t have to switch between multiple tabs or windows
to access the relevant information.
Some of the key features of desktop trading applications are as follows.

• Real-time update of market data

• Option to invest in various securities, IPOs and mutual funds directly
from the platform
• Ability to map keyboard shortcuts for various trading activities
• Integrated news flashes and trading and market research reports
• One-click portfolio details
• Quick and easy installation and updation
So, what happens on the front end of the stock markets when you place an
order?
Here’s a brief overview of what you need to do and what goes on at the front
end when you place an order through your trading app or your web-based
trading platform.
When you place a buy order:
Ensure that there are adequate funds in your trading account.
Head to the trading platform of your choice and place a ‘buy’ order for the
share you wish to purchase.
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The order is placed and the funds are deducted from your trading account.
Once the clearing and settlement process is complete, the share that you
purchased is credited to your demat account.
When you place a sell order:
• Ensure that you have the share in your demat account that you wish to
sell.
• Head on over to your trading platform of your choice and place a
‘sell’ order for that share.
• The order gets placed and the share that you sold is blocked in your
demat account.
• Once the clearing and settlement process is complete, the funds from
the sale are credited to your trading account and the share is debited
from your demat account.
What are the resources that can help you trade through the front end of
the stock markets?
Without the right resources, it may not be possible for you to make informed
decisions about investing and trading in the stock markets. Here are some
resources that can help you buy or sell stocks through the trading
terminals on the front end.
Everyday news
A necessary and reliable source of information, everyday news can help you
gauge the overall economic and political conditions in your country and in
the rest of the world. It’s very important to be aware of what’s going on
these two fronts, since developments in the micro and macro environments
can influence the movement of the stock market considerably.
Business and finance websites
Since the stock market is essentially a reflection of the overall financial
situation, it makes sense to read through business and finance websites,
doesn’t it? These websites offer a wealth of financial information about the
various sectors, industries and companies in our country. In addition to
domestic business and financial data, these websites allow you to keep a
track of both the Indian and the global market movements as well.
Company reports
Before investing in a company, it is of utmost importance to get to know the
organisation. And what better way to do that than reading through the
corporate literature and the various reports published by the company
itself?
These reports are published periodically and offer huge insight into the
financials, the management and the vision and mission of a company.

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Reading through and deciphering these complex reports is an art by itself,
which we will cover in detail in one of the forthcoming chapters.
Analyst reports
Also known as research reports, these reports are compiled by third-party
analysts who are not associated with the company. Analyst reports offer an
objective outsider’s view on a company, its financials and the industry it
operates in. You can use the information contained in these reports to make
investment decisions regarding a company, a sector, or an industry.
Wrapping up
Alright then, that brings our chapter on the front end of the stock markets
to a close. While trading terminals help you with trading in the stock
markets from the front end, there’s also a lot that goes on behind the
screen. Head to the next chapter to find out more about this.
A quick recap
• Perfect for beginners, mobile trading apps give you real-time updates
on the market trends and possess almost all the features of a
traditional trading application. With these apps, you can trade in the
stock market from virtually anywhere in the world
• You can access web-based trading platforms through a web browser
from your desktop, laptop, or even your smartphone. Ideal for
beginners and for traders with a fair bit of experience, these web
platforms offer a host of benefits over and above the mobile trading
applications.
• Desktop applications are designed for expert traders. They generally
offer a single-window trading platform for a swift and smoother
trading experience. Since all the essential trading features are
integrated right into the software itself, you don’t have to switch
between multiple tabs or windows to access the relevant information.
• When you place a buy order, the funds are deducted from your trading
account. And once the clearing and settlement process is complete,
the share that you purchased is credited to your demat account.
• When you place a sell order, the share that you sold is blocked in your
demat account. And once the clearing and settlement process is
complete, the funds from the sale are credited to your trading
account and the share is debited from your demat account.
• Resources like everyday news, finance websites, company reports and
analyst reports can help you trade through the front end of the stock
markets.

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