Demat & Trading account

In the long run, it’s not just how much money you make that will determine your future prosperity. It’s how much of that money you put to work by saving it and investing it. Peter Lynch

Demat is simply an account that allows you to hold your shares in an electronic format. A demat account converts the physical shares into an electronic form, therefore dematerializing it. On opening a demat account, you will be given a demat account number to be able to electronically settle your trades.

A trading account is used for the buying and selling of securities. With every trade request, the securities are debited or credit from the Demat account accordingly. A Demat account stores your stock holdings electronically, which is linked to their trading account.