4.4How to open a trading account
1What is it?
The trading account is usually opened together with the demat in the same application. You choose which segments to activate: equity (cash), F&O, currency, commodity.
2Why does it exist?
Segments let the broker check you are eligible. F&O needs extra income proof (bank statement, ITR) because of higher risk.
3Practical use
As a beginner, activate only the equity (cash) segment. Add F&O later only after you understand Level 11.
4Quick revision
- Opened with the demat account.
- Choose segments.
- F&O needs income proof.
5Knowledge check
Q1. Which segment should a beginner start with?Show answer
Equity/cash.
Q2. Why does F&O need income proof?Show answer
Because it is high-risk, and SEBI requires brokers to check eligibility.
Q3. Are demat and trading accounts opened separately?Show answer
Usually together in one application.