INTRODUCTION

The trading on stock exchange in INDIA used to take place through open protest 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

ONLINE TRADING
Definitions

TRADING
Buying and selling securities or commodities on a short-term basis, hoping to make quick profits.
More generally, any buying and selling of securities, commodities, goods, or services.

online trading
Buying and selling securities using the Internet or broker-provided proprietary software that works through the Internet. Online trading is distinguished from Wireless Trading, a nascent area of service where brokerage customers can trade via cell phones, pagers, and hand-held

SCREEN BASED TRADING

NSEs screen based trading is known as NEAT- National exchange for automated trading.
BSES screen based trading is known as BOLT- Bombay online trading.

Ticker window

Pre -Requisites for online trading

Client must have permanent Account number (PAN). The client has to have internet connection for online trading.

Sun java should be installed in clients system.

The client must have an email id.

Client must have an email ID

Client must open a Demat account.

ONLINE TRADING PROCESS

LOGGING ON
On starting NEAT application, the logon screen appears with the following details.

USER ID TRADING MEMBER ID PASSWORD

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 ENTER SELL ORDER

Same as the process involved in the placing of the buy order.

To enter a Sell order

TERMS USED
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.

bolt
To facilitate smooth transactions, BSE had replaced its open outcry system with the BSE On-line Trading (BOLT) facility in 1995. This totally automated, screen-based trading in securities was put into practice nation-wide within a record time of just 50 days. BOLT has been certified by DNV for conforming to BS7799 security standards, making BSE the second stock exchange in the world to have this certification. The capacity of the BOLT platform stands

BSE has also introduced the world's first centralized exchange based Internet trading system, bsewebx.co.in. The initiative enables investors anywhere in the world to trade on the BSE basis which has enabled it to achieve the BS7799 certification and the subsequent ISO 27001 certification. In addition, BSE has also been successful in maintaining systems and processes uptime of 99.99%.

BSE operates a large private network in India. In addition to BSE service segment, the network supports Depository operations (CDSIL) and Commodities Trading (NMICE). The network uses following segments to cater to market intermediaries.

BSE's Campus LAN BSEs Campus LAN covers around 350 member offices across 3 BSE buildings: P.J. Towers, Rotunda and Cama building

BSE WAN BSE WAN connects approximately 2500 member offices within Mumbai and 29 major metros to the BSE systems. Leased MLLN circuits from MTNL / BSNL are provided with ISDN / TTML leased circuit backup. Around 550 circuits are of 2Mbps capacity and the rest are of 64Kbps / 128Kbps capacity.

VSATs: BSE's uses VSAT technology to cater to around 2000 locations spread across 400 cities. Services are provided from BSE's satellite hub at Mumbai. Regional Hubs:
The regional Hubs in 9 cities provide low cost local leased lines backed by high availability trunk backbone to BSE. Such regional technology hubs are commissioned in Ahmedabad, Bangalore, Chandigarh, Chennai, Delhi, Hyderabad, Indore, Jaipur, Kolkatta, Ludhiana, Pune and Rajkot.

Benefits of online trading

Less costly Peace of mind Keeping records Access to information and investment tools Unparalleled Liquidity Unparalleled Safety Reduces the settlement risk Offer greater transparency

Problems
Server not found Connectivity of the broker with NSE and BSE Cyber Attack Non-Availability of a seamless interface Non- availability of personalized Margin Little use of advisory services Increased charges

Thank You