INTRODUCTION

The trading on stock exchange in INDIA used to take

place through open outcry method without use of
information technology for immediate matching or
recording of trades.
This was time consuming and inefficient. This
imposed limits on trading volumes and efficiency. In
order to provide efficiency, liquidity, and
transparency NSE and BSE introduced nation wide
online fully automated “SCREEN BASED
TRADING SYSTEM”
 SCREEN BASED TRADING
NSE’s screen based trading is known as
NEAT-
National exchange for automated trading.
 BSE’S screen based trading is known as
BOLT-
Bombay online trading.
Ticker window
 MECHANISM OF ONLINE
TRADING
NSE has main computer which is connected
through “VERY SMALL APERTURE
TERMINAL”(VSAT) installed at its office.
THE main computer runs on a fault tolerant
“STRATUS” mainframe computer at the
exchange. Brokers have terminals installed at
their premises which are connected through
VSATS.
 HOW TO PLACE ORDER
An investor informs broker to place an order
on his behalf. The broker enters the order
through his PC, which runs under windows NT
and sends signal to the satellite via VSAT. The
signal is directed to mainframe computer at
NSE via VSAT at NSE’s office. A message
relating to the order activity is broad casted to
respective member.
To enter a buy order
 BASIS OF OPERATION
The online trading operates on the strict basis of
PRICE PRIORITY and
TIME PRIORITY
 HOW TO ENTER SELL ORDER

Same as the process involved in the placing of

the buy order.
To enter a Sell order
 LOGGING ON

On starting NEAT application, the logon screen

appears with the following details.
 USER ID

 TRADING MEMBER ID

 PASSWORD

 NEW PASSWORD
 TERMINOLOGIES OF ONLINE
TRADING
 Snap quote:- feature available to get
instantaneous market information on a desired
security.
 Active and Passive orders:- when any order
enters the trading system, it is an active order.
It tries to find a match on the other side of
books. If it finds a match trade is generated, if
does not finds match it turns to passive order
which is stored in order book.
 MOVEMENT TIME FREEZED
 Circuit breakers:-
Started implementing 10% PRIOR 1pm 1 HOUR
compulsorily from July AFTER 1pm ½ HOUR

02, 2001. The circuit

15% PRIOR 1pm 2 hours
breakers will be AFTER 1pm- 1 hour

operated at the three 2pm

AFTER 2pm Freezed for the
stages of INDEX day

movement, either way

viz at 10%, 15%, 20%.
20% ANY TIME FREEZED FOR
THE DAY
Market By Price
 Order Book

Ord Book- Pending traded canceled

Trade Book
 BY
LAKSHMEESH MR
Thank You