In terms of turnover, the National Stock Exchange is the largest Indian bourse and the 11th largest stock exchange all over the world. If you are new to stock trading, this post includes 5 important things that every investor/trader should know about the exchange.
The Bombay Stock Exchange and the National Stock Exchange are two of the most popular stock exchanges in India. While BSE is a bigger brand, NSE is comparatively larger in terms of turnover. While most new investors and traders are interested in strategies and tips to make money, it is equally essential first to understand the exchange that one will use for trading.
If you are new to the Indian stock market, these are five essential things that you should know about the National Stock Exchange-
- The beginning of the National Stock Exchange
While BSE is one of the oldest stock exchanges all over the world and was founded in 1875, the National Stock Exchange is comparatively newer. It was founded in 1992 to bring more transparency to the Indian stock market which was mostly made up of the BSE. Rather than only allowing a few brokers to trade, it was the National Stock Exchange that made trading accessible to anyone throughout the country.
- Nifty 50
Nifty 50, popularly known as just Nifty, is the flagship index of the National Stock Exchange. While there are currently more than 1,900 companies listed on the National Stock Exchange, Nifty is made up of the average of 50 companies with the largest market capitalisation from 12 different industrial sectors. Overall, Nifty represents the overall sentiment of companies listed on the National Stock Exchange.
- Trading at the Speed of Light
While the National Stock Exchange is already the largest derivative trading platform all over the world, it is a cut above the rest in many other departments too. For instance, the trading speed on the exchange has been increased considerably in the last few years. Many experts agree that the exchange has achieved nirvana as far as the trading speed is concerned, and there is no technology to improve the speed further.
- Trading F&O
While futures and options are already very popular in many different parts of the world, it was only the cash markets for the Indian traders until 2000 when the National Stock Exchange launched the Index Futures. Just like stocks, derivates is also a type of trading instrument. It involves exclusive contracts which derive their value from an underlying security, like stocks or commodities.
- Start trading on the National Stock Exchange
To begin trading on the NSE, all you need to have is a savings bank account, a trading account, and a demat account. If you have a bank account, get in touch with a top broker to get yourself a trading and demat account. Once these accounts are created, you can then start trading on the National Stock Exchange.
The more you know about the platform where you’ll be trading, the more confident you’ll be with your trades. If you are trying to know more about the National Stock Exchange, these are 5 of the most important things that you should keep in mind.