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Role of options trading broker in selling securities – Market Trade

An investor intending to sell securities intimates his broker before selling the securities that he had bought earlier. After the deal is executed, the investor gives his depository participant a delivery instruction slip, thus authorizing him to debit his account and credit the clearing member’s account. The clearing member gives his depository participant a corresponding receipt along with the instruction slip (or standing instructions), authorizing his depository participant to credit his account with the securities that are sold.

On the pay-in day, the depository participant, at the instruction of the clearing member, debits the latter’s account and delivers the securities to the clearing corporation/clearing house. In the depository segment, pay-in and pay-out of securities takes place on the same day. With the advent of virtual trading platforms, buying and selling securities is a totally hassle free process.

For the options trading broker, a good trading day starts on a busy note. He has to deal with buyers and sellers from far off places. However, the question of distance does not arise, since the availability of virtual platforms help traders from any part of the country to enter into the financial market and do all the trading activities just like the trade in stocks takes place in a stock exchange.

An options trading broker will charge a fee for the services rendered. Both buyers and sellers have to pay a fee as commission. Some of the options trading brokers charge only on the profits made when selling a share. On the other hand, a majority of the brokers charge a customer irrespective of whether the particular customer or trader has posted significant profits or not.

During a bull run in the financial market, selling a share may not be a problem. When the stock market index is continuously moving up, it is a good opportunity to sell at a higher price. Even though experts caution that the best time to buy is when the financial market is on the downturn, actually the security of a well-managed company is a best bet irrespective of the wild fluctuations in the stock market.