Accounts

Trading Account

The account you use to place buy and sell orders on a stock exchange — separate from the Demat account that holds your shares.

A trading account is the account you actively use to place buy and sell orders on a stock exchange like NSE or BSE. It’s linked to your bank account (for funds) and your Demat account (for share delivery).

Key Idea

A trading account is an action account — it’s how a transaction actually happens. It’s different from a Demat account, which simply stores what you already own. See the full comparison in What Is a Demat and Trading Account?.

Example

When you open your broker’s app, search for a stock, and tap “Buy,” you’re using your trading account to send that order to the exchange.