Knowledge Center

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DEMAT ACCOUNT

A Demat Account (Dematerialized Account) is used to hold financial securities such as shares, exchange-traded funds (ETFs), bonds, mutual funds, and government securities in electronic form. It eliminates the risks associated with physical share certificates, such as loss, theft, damage, or forgery.

In today’s digital-first investment environment, a Demat account is mandatory for participating in stock market transactions in India. It ensures seamless settlement of trades, faster transfers, and efficient portfolio management.

When you purchase shares, they are credited to your Demat account, and when you sell, they are debited accordingly. This entire process is automated, secure, and regulated.

Why Choose Flattrade Demat Account:

Flattrade offers a cost-efficient and technology-driven Demat account designed to suit both new investors and active traders:

Zero brokerage across all trading segments, helping you maximize returns Free account opening with a transparent pricing structure No hidden charges, ensuring complete cost clarity Fully digital onboarding process with quick activation Secure and reliable holding of securities with regulatory compliance Seamless integration with trading account for smooth execution Access to multiple investment products, including IPOs, mutual funds, and government securities Dedicated support team to assist with account-related queries

With Flattrade, managing your investments becomes simple, cost-effective, and efficient.

TRADING ACCOUNT

A Trading Account enables you to buy and sell financial instruments such as equities, derivatives (futures and options), commodities, and currencies in the stock market. It acts as an interface between your bank account and Demat account, facilitating the execution of trades on stock exchanges.

When you place a buy or sell order, your trading account processes the transaction in real time, ensuring that trades are executed efficiently based on market conditions.

Flattrade provides a robust trading ecosystem designed for speed, flexibility, and advanced market participation.

Key Features of Flattrade Trading Account:

Zero brokerage across all segments including Equity Delivery, Intraday, Futures & Options, Currency, and Commodities High-speed order execution with reliable infrastructure Multiple trading platforms (Web, Mobile App, Desktop) to suit different trading preferences

Advanced order types such as:
  • Bracket Orders (BO)
  • Cover Orders (CO)
  • Stop Loss & Stop Loss Market
  • Good Till Triggered (GTT) orders
  • Up to 5X leverage on intraday trading, enabling better capital utilization
  • Margin Trading Facility (MTF) to take delivery positions with leverage
  • Real-time market data and advanced charting tools for technical analysis
  • Customizable interface for an improved trading experience

Flattrade’s trading account is designed to cater to both beginners looking for simplicity and experienced traders who require advanced tools and execution capabilities.

IPO (INITIAL PUBLIC OFFERING)

An Initial Public Offering (IPO) is the process through which a private company offers its shares to the public for the first time to raise capital. In India, IPOs are regulated by the Securities and Exchange Board of India (SEBI), ensuring transparency and investor protection.

Investing in IPOs allows individuals to participate in a company’s growth from an early stage by purchasing shares before they are listed on the stock exchange.

IPO Process in India:

  • A company files a Draft Red Herring Prospectus (DRHP) with SEBI
  • After regulatory approval, the IPO opens for public subscription Investors apply through ASBA (Application Supported by Blocked Amount) or UPI-based methods
  • Funds are blocked in the investor’s bank account until allotment Shares are allotted based on demand and credited to the Demat account
  • The company gets listed on the stock exchange, and trading begins

Benefits of Investing in IPOs:

  • Opportunity to invest in companies at an early stage
  • Potential for listing gains
  • Portfolio diversification
  • Portfolio diversification Transparent allocation process regulated by SEBI

Applying for IPOs with Flattrade:

  • Zero charges on IPO applications
  • Simple and user-friendly application process
  • Direct linkage with your Demat account for quick credit of shares
  • Real-time tracking of application and allotment status
  • Seamless integration with trading account for post-listing trading

    • Flattrade simplifies IPO investing, making it accessible and efficient for all types of investors.

DERIVATIVES

Derivatives are financial contracts whose value is derived from an underlying asset such as stocks, indices, commodities, or currencies. The most commonly traded derivatives in India are Futures and Options.

They are widely used by traders and investors for hedging risk, speculation, and leveraging market opportunities.

Types of Derivatives:

  • Futures Contracts
  • These are agreements to buy or sell an asset at a predetermined price on a specified future date. Both parties are obligated to execute the contract at expiry.
  • Options Contracts
  • These provide the buyer with the right, but not the obligation, to buy or sell an asset at a predetermined price before or on expiry.
Options are categorized as:
  • Call Options (Right to Buy)
  • Put Options (Right to Sell)

Options

Options are contracts between an option writer and a buyer that gives the buyer the right to buy/sell the underlying such as assets, other derivatives etc. at a stated price on a given date. Here, the buyer pays the option premium to the option writer i.e the seller of the option. The option writer has to oblige if the buyer decides to exercise the right given through the options contract.

Why Trade in Derivatives:

  • Hedging: Protect your portfolio against adverse price movements
  • Speculation: Take positions based on market expectations
  • Leverage: Take positions based on market expectations

Derivatives Trading with Flattrade:

  • Zero brokerage on Futures & Options trading
  • Competitive margin requirements for efficient capital usage
  • Access to advanced options strategies and analytics tools
  • Support for intraday and positional trading
  • High-speed execution for time-sensitive trades
  • Robust risk management systems aligned with regulatory norms