How to do trading in SBI Demat Account?

Stock trading involves 3 different accounts:

1. Trading Account
2. Bank Account
3. Demat Account

SBI Demat Account holds securities in the digital form. It works like a bank account. As the bank account holds money, the Demat account holds securities. The securities such as Shares, Mutual Funds, and shares allocated through IPO etc.

The shares are credited into demat account every time the customer buys new securities and is debited when they sell it.

The central depositories (CDSL and NSDL) manage the Demat account. The broker like SBO only acts as an intermediary between you and the central depository.

SBI Trading Account is used for stock trading (buying and selling of the shares). Customer place orders for buy or sell equity shares in trading account online or over the call.

SBI Bank Account is for credit/debit of money for transactions done in the trading account. When the customer buys the share, the money is withdrawn from the bank account. When the customer sells the shares, the money received is credited in the SBI Bank account.

Trading is done in Trading Account. The Demat and Bank accounts provide shares and money needed.