Equity Trading

Equity trading refers to the buying and selling of shares of listed companies on recognised stock exchanges — NSE and BSE in India — with the objective of generating returns through price appreciation (capital gains), dividend income, or a combination of both. Equity trading encompasses a broad spectrum of activity: from long-term delivery-based investing (buying shares for multi-year wealth creation) to intraday trading (opening and closing positions within the same session). In India, equity trading is conducted through SEBI-registered brokers via online trading platforms, mobile apps, or offline channels — with trades executed electronically on the exchange's order matching system. The Indian equity market has grown dramatically over the past decade — NSE and BSE combined average daily cash equity turnover regularly exceeds ₹1 lakh crore, with over 16 crore active Demat accounts as of 2025. Equity trading is distinguished by settlement — delivery trades (CNC/Cash and Carry) result in actual share transfer on T+1, while intraday trades (MIS — Margin Intraday Square-off) are squared off within the same session without delivery obligation. For investors, equity trading carries varying risk profiles depending on the strategy employed — long-term index-based investing is relatively lower risk, while concentrated short-term trading in individual stocks or sectors carries significantly higher risk. SEBI's investor education initiatives emphasise that equity investment should be aligned with the investor's financial goals, risk tolerance, and investment horizon.