How much money is required for stock market trading?
Know exactly how much money is required for trading in different segments.
How much money is required to start trading?
Well, that depends on, in which segment you want to trade. Either the Equity segment(Only trading the shares) or the derivative segment(Futures and Options of shares and index).
How much money is required depends on how much profit you want from the market. There are 1500 companies listed on NSE and 5000 companies listed on BSE, And different company share has different price. Some companies share costs 10Rs. also and some company shares cost you 10,000Rs also so make sure that how much you can afford.
And let's suppose you want 2000Rs profit then what do you need to do?
first, you need to buy 1000 shares of any company that you can afford, and if you bought at 100Rs
and the share price goes to 102 Rs. 2000Rs will be your profit.
Bought at 100Rs
Sold at 102Rs
The movement of the share price is 2Rs (102-100=2)
number of shares bought = 1000
Simple formula: Profit or Loss =Number of shares you bought * Movement of the share price.
=1000* 2=2000Rs profit
if the price goes to 98 then 2000Rs loss.
I told about the equity segment, I can't explain here about the derivative segment I will cover it in other articles or videos.
But Trading in the Derivative segment, in that also Options trading can give you high profit in low trading capital if you can trade properly but it's a super risky segment. But many peoples also double their capital in a day, and many people lose their entire capital here. Here you can earn 5k-30k approx with 2 lacs trading capital but that much you can lose also if it goes reverse of your position. You Need much practice to trade in this segment but if you learn once correctly, then by using 15k trading capital you can make a profit of up to like 500Rs-1500Rs on one lot, if you buy more lots then the profit will be more but you may lose also if it goes reverse.
And one more thing for the question "How much money is required for trading" is, You need a good financial back to survive in the market even after a huge loss, making a profit or loss is not a big thing in the market, the thing is you need to survive with good capital Because this is the game of survival.
One more very important thing for traders
Trade in only those shares which are highly liquid in nature, Highly liquid means if you place a buy order it should execute fast, and if you place a sell order then also it should execute fast otherwise it will disturb your profit. In short, you should trade only those shares which have high trading volume.
How much money is required for buying the stocks is
Required money = Number of shares you want to buy * Share price of the company share
You don't need to worry about these calculations, everything is calculated automatically in broker app
