How to trade in ICICI Direct? Buy/Sell Stocks– ICICI direct is one of the best online broker websites for buying or selling a stock on the stock market. Using ICICI direct, you can buy or sell a stock within two minutes. The brokerage charge for the ICICI direct is decent and the interface is very user-friendly, so you can easily understand how to trade in ICICI direct.
So be with me for the next 5-10 minutes to learn how to trade in ICICI direct.
For those of you who are here for quick answers, here is the video on How to trade in ICICI Direct which can help you to learn the process fast. But, I do recommend you to read the whole post in order to get an in-depth knowledge of trading in ICICI Direct. Here it goes –
Source: ICICI Direct
First of all, you need to know that the market opens from 9:00 AM to 3:30 PM from Monday to Friday, excluding few national holidays like Independence day, Republic day etc. You can get the complete list of holidays in a year from BSE/NSE website. So, basically, you can place order to buy the stocks during market days when the market is opened from 9:00 Am to 3:30 PM. At this time you can place orders to buy the stock at current market price or you can set a limit price (Say you want to buy a stock whose market price is 90, only when the price falls to 88. Then you place a limit price 88 against the market price which is 90).
You can also place orders outside the time when the market is open i.e. before 9:00 AM or after 3:30 PM, but then the order will be placed only when the stock market opens. Although these are advantageous for those who can’t place an order during the market time, there are few disadvantages of placing the orders after market time. For example, you won’t know the opening price of the stocks for the next day, so it might open at a bigger number the next day which may lead you to reset your order or cancel and you won’t be able to buy the stock.
So, it would be preferable to buy the stocks only during the market time so that you have the full information of the current market price of the stock.
Now that you know about the background of the stock market timings, let’s move towards the topic of the post – how to trade in ICICI direct? Buy and sell stocks.
Want to learn more? Here is a best selling book on stock market which I highly recommend you to read: ONE UP ON THE WALL STREET by Peter Lynch.
Step by step guide for How to trade in ICICI direct:
Step 1: Login into your ICICI Direct account
First, you need your account credentials for login in the ICICI direct. If you open a 3-in-1 (Saving+Demat+Trading) account in ICICI Direct, you can have the access to buy/sell and hold your stocks using the same account. So, If you are new to trading, I will suggest you open a 3-in-1 account in ICICI Direct.
So, after you have opened your account in the ICICI direct, you will get your username and password for login. The first step is to the google and search, ‘ICICI Direct’. Open the first link that comes in the search engine (www.icicidirect.com). Then click on login on the top right-hand corner. The website will ask you about your credentials like username, password, and date of birth/pan card. After entering the correct details, you can enter into your ICICI direct account.
STEP 2: Allocate funds for buying stocks
The next step in how to trade in ICICI direct after logging in your ICICI direct account is to allocate funds in the demat account.
It’s very simple to understand the concept of allocating funds. Let’s say you have Rs 50,000 in your saving accounts in ICICI bank. And you want to buy stock worth Rs 500. Then, you need to transfer that amount from your saving account to the demat account so that you can place the order of the stock worth Rs 500. This can be done by allocating the fund.
Allocate fund option comes can be found on the landing page after logging and is highlighted here.
Typically, this step of allocating funds can be done within a minute if you have a 3-in-1 ICICI Direct account.
The steps are as follows:
- Go to the option Secondary, Market Equity, ETF
Note: if you want to buy IPO, Mutual funds then you have to go to other option.
- Select ‘ADD’ option and enter the amount you need to add.
- Then click on ‘Submit’.
- You can see the allocated fund in the ‘Current Allocation’ after submitting.
Step 3: Place order of the stock
This is the third and final step of how to trade in ICICI Direct.
After allocating the fund, you should select the option ‘Place order’, which in present in the Equity option. This is highlighted here:
After selecting the place order, you have to follow the following steps. The steps are simple and can be performed under a minute:
- First, select the ‘Cash’ option in the Product.
- Next, you have the option to select the stock exchange. You have two options NSE (National stock exchange) or BSE (Bombay stock exchange). You can choose any one and it doesn’t make much difference as prices are almost same on both exchanges and follows almost same trend. I generally prefer NSE.
- Then you can view your limit of how much money you have to buy the stocks. If you need more money, you can add amount by allocating extra funds.
- Now enter the stock.
For example, if you want to buy a stock of Tata Motors, start typing tata mot on the stock option. A drop down options will appear and you can select your stock from the list.
- Next, you need to enter the quantity. the number of stocks that you want to buy.
- After that, you have to select that option for order validity.
Here you have three options – DAY, IOC or VTC. If you want to buy the stock and place order for that day only, you shall select Day. If you are placing a limit price and want to continue the placed order next days, then you can select VTC (Valid till cancellation).
- Next, you have to select the Order Type.
There are two options here – Market and Limit. I have already explained about these earlier. If you want to buy the stock at market price select ‘Market’ option. If you want to buy the stock at a limit price, select ‘Limit’ option.
Say, a Tata motor stock currently has a market price of Rs 469.10 and you want to buy at that price, then you should select ‘Market’ option. If you want to buy a tata motors stock only when the price is Rs 465 or lower, select ‘limit’ option.
- If you have selected ‘limit option’ in the Order Type, then you need to enter the ‘Limit Price’ in the next step.
- The last option is stop loss trigger price. You can leave this option blank and is not a must-fill option.
An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor’s loss on a position in a security. You can study more about stop trigger price here.
- Finally, select ‘Buy Now’
After clicking on ‘Buy Now’, you will be directed to a confirmation page. You need to confirm the details. And Tada!!!! You have bought a stock! Congratulations!!!!
If you want to re-confirm the stock that you bought, you can do it by selecting the option ‘TRADE BOOK’ in equity. The option is highlighted here.
So, that’s all. This is the process of How to Trade in ICICI Direct.
I hope this post is useful to the readers. If you have any doubts, or need any additional help, feel free to comment below. I will be happy to help you out.
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