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Level 4 of 13 · Investing basics

How to Start Investing in the Stock Market

By the end you will: learn to buy and sell shares.

Time to get practical. This level walks you through opening accounts, finding a company, placing different kinds of orders, checking your portfolio and understanding every charge and tax on a trade. You can practise every step on MojoStox with virtual money before using real money with a real broker.

Getting set up

  1. 4.1How to start investing in IndiaStarting takes four steps: learn the basics, choose a broker, complete KYC to open demat and trading accounts, then add money and place…
  2. 4.2How to select a stockbrokerChoose a SEBI-registered broker whose costs, app, service and safety suit you.
  3. 4.3How to open a Demat accountYou open a demat account online with a broker (as Depository Participant) by completing e-KYC, usually in 15–30 minutes.
  4. 4.4How to open a trading accountThe trading account is usually opened together with the demat in the same application. You choose which segments to activate: equity…
  5. 4.5What documents are required for KYC?KYC (Know Your Customer) is identity and address verification required by law before you can invest.
  6. 4.6How to add money to a trading accountYou transfer money from your linked bank account to your broker using UPI, net banking or bank transfer. It shows up as available funds or…

Finding and buying a stock

  1. 4.8How to identify a stock symbolFind the symbol on the exchange website, in your broker’s search, or on the company’s investor page.
  2. 4.9How to place a buy orderOpen the stock, tap Buy, choose product (delivery/intraday), quantity, order type and price, then confirm.
  3. 4.10How to place a sell orderOpen the stock from your holdings, tap Sell, enter quantity and order type, and confirm. For delivery shares you authorise the debit from…
  4. 4.11What is a market order?A market order buys or sells immediately at the best available price.
  5. 4.12What is a limit order?A limit order buys or sells only at your chosen price or better.
  6. 4.13What is a stop-loss order?A stop-loss (SL) order automatically sells (or buys) when the price reaches a trigger price, to limit losses. An SL-Limit order has both a…
  7. 4.14What is a stop-loss market (SL-M) order?An SL-M order becomes a market order once the trigger is hit, so it sells at the best available price.
  8. 4.15What is a GTT order?A GTT (Good Till Triggered) order sits with your broker (for up to a year) and is sent to the exchange only when your trigger price is hit.

Tracking your money

  1. 4.16How to check your portfolioYour portfolio (holdings) screen shows every stock you own, your average buying price, current value and profit or loss.
  2. 4.17How to calculate profit and lossProfit or loss = (Selling price − Buying price) × Quantity, minus charges.
  3. 4.18What are brokerage charges?Brokerage is the fee your broker charges for executing trades.
  4. 4.19What are STT, GST, stamp duty and exchange charges?Beyond brokerage, every trade carries statutory charges set by the government, exchanges and SEBI.
  5. 4.20What is the tax on stock market profits in India?Profits from selling shares are capital gains and are taxed based on how long you held them.